Developers of downtown Los Angeles projects have been working day and night in order to create exciting new destination areas and breathtaking residences throughout the magnificent city. This summer a few more projects got underway making the development landscape for the next two years looking very exciting for Los Angeles home owners to watch.
One of the biggest projects that is sure to change Los Angeles’ iconic skyline has been taken on by prolific downtown developer Barry Shy, who is working on building four stunning new residential projects. Last year, Shy proposed putting three new projects in the north South Park neighborhood, suggesting that this area might be Los Angeles’ next hotspot.
Shy and architecture firm David Takacs Architecture recently released proposed plans for a 32-story tower which is slated to go up in what was formerly a parking lot behind the Ace Hotel. If this project is any indication of the direction Shy and the Takacs firm are taking, Los Angeles home owners can definitely show enthusiasm as the project is bigger and more beautiful that originally intended.
From last year to this year, the concrete, glass and stone tower grew from original plans to have a 20- to 21-story tower to its current 32-story plans. It will also reportedly have 239 condos and approximately 5,405 square feet of retail space at the street level. Developers plan to keep the individual retail spaces on the smaller side so as to attract neighborhood-serving retail in addtion to bringing in some new restaurants.
New Developments Come As Los Angeles Home Market Gains
With the great market conditions that the Los Angeles housing market has been displaying as of late, its quite apparent as to why Shy, an experienced and very successful developer, has decided to invest so heavily in the city. Throughout California, reports have run rampant of the home appreciation slowdown, and although Los Angeles hasn’t been immune to statewide trends, it still has managed to maintain a strong and healthy market.
According to Altos Research, a California-based real estate analytics company, Los Angeles home prices have slowed a bit in the last few weeks, coming to a median single-family home value of $658,967 as of August 15. Prices had been on a steep gain since the beginning of March and have since leveled off at a high point, but have not shown any sign of decreasing, which is great for current home owners in the Los Angeles area.
Another indication of this strong market is its movement downward on Altos’ unique market measure known as the Market Action Index. This value measures from a neutral standpoint of 30 whether demand is outstripping inventory, any value above 30, or whether the home supply is larger than the amount of home buyers, any value below 30. Los Angeles has seen very high demand and very little inventory over the last few months and has been well over 30 and into the 40s for some time, but has recently ticked down to 39.60, indicating that the market is working toward balancing itself out.
If you are interested in luxury property in Los Angeles, please don’t hesitate to give our team a call today!