California Loft Market Set to Rebound

Predictions set the California loft market to rebound in 2010. modest price increases and steady sales activity, according to a forecast by the California Association of Realtors released yesterday.

"We expect GDP to begin recovering in 2010--but at a modest 1.7% to 2% percent growth rate," said Doug Culkin, president of the National Apartment Assoc., during his keynote address at RealShare Apartments 2009 conference.

As many economists have put it," Culkin noted, "recovery from this recession is more likely to resemble a ‘U’ than the ‘V’ shape that has characterized recoveries of the past couple of decades."
The new trend toward green living supports condo living. Consumers are shrinking their living space to cut their energy bills and reduce their carbon footprint. Downtown living also reduces the need for a car. On a per capita basis, loft living cuts the carbon footprint by as much as 70% according to various resources.

People live in smaller places, enjoy more luxury and convenience, and spend less time in the commute. This will increase the demand for condos in California’s major cities. This is of special interest to property investors. The value of condominiums in the LA is currently a prime market. Increased demand for green neighborhoods will improve the value and increase the demand for loft living.
Like all lifestyle aspects in LA, loft living comes with its own quirks. Life is LA is like nowhere else in the world. The tourist world moves in tandem with the residents in a surreal daily cycle. Prospective loft buyers moving from homes in the suburban areas, or prospective investors, need to realize that the city is constantly shifting.

Lofts in the downtown core will always be immune to price fluctuations. Lower priced lofts may not survive a new development, the construction of a tower in the next lot, or shifts in the desirable neighborhoods. While the statements of Doug Culkin and the California Association of Realtors are accurate, buying a loft that will maintain its value requires research into local development, schools, and business development growth.

The housing market does follow trends. As one neighborhood rebounds and experiences an upward growth curve, there is an equally strong negative impact on other neighborhoods. These neighborhoods do not need to join. This is the results of governments reallocating funds for schooling and development to the new neighborhoods.
Research into the three and four year proposals for a neighborhood offers a reassuring glimpse into whether a competitively priced loft is located in a neighborhood.