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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (6310)	10/28/2002 1:59:38 PM
From: ild	Read Replies (1) \| Respond to of 306849

Elroy, thanx for details. I guess their 1,000,000 sq.ft. number was also not correct. What in your opinion contributes to the strength in LA RE market? Are fundamentals in LA economy very sound? The only pocket of strength I see is entertainment. The manufacturing is floundering. The other big plus is climate, but in this regard Orange county is better (yes, I live in OC). My niece is about to make an offer for $800K+ house in Studio City. I'm looking for reasons to talk her out of buying RE for a couple of years. EDIT: Just read your next message about jobs in LA. Thanx for information.

To: Elroy Jetson who wrote (6310)	10/28/2002 3:38:54 PM
From: Michael Sphar	Read Replies (1) \| Respond to of 306849

Looking at this transaction a little deeper, assuming the aforementioned 2800 sq ft per unit average is half that, then the metrics are $92K per unit, $65 per sq ft, and a GRM of 10.96. These are considered pretty nice numbers up here in Northern Calif. Looks like the buyer is going to do okay. If he could bump that GRM up to say 13, he'll make a killing. That is not a rent control city is it? Recently, I was looking at a list of 10 six to fourteen unit buildings that sold in the last six months in San Francisco. Their metrics average to: $194,222 per unit, $234 per square foot, $59,764 price per room, and a GRM of 11.73. SF is a rent control city.