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This story first appeared in the Feb. 5 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.
Even under the most stable of conditions, predicting the housing market can be a tricky proposition — and with plummeting oil prices, rising interest rates, China’s slumping economy and a wildly turbulent stock market, times are anything but placid. THR asked Aaron Kirman, president of John Aaroe Group’s International Estates Division, for his take on the impact recent global economic developments have had on L.A.’s real estate market thus far.
“It’s a little too soon to see a major impact, but people are definitely talking about it, and that makes an impact,” says Kirman. “I do have one client who told me last week that he had suffered some big losses in the stock market and needed to sit on the sidelines for a while.” The Realtor works with many Chinese clients and had been expecting to take a hit but instead has “actually gotten more business lately, not less,” he says. “The really wealthy Chinese have already pulled their money out of China and see the U.S. as a much safer market to invest in.”
Pardee Properties’ Tami Pardee says that compared to San Francisco and New York, L.A. is still a good value: “Properties by the beach, in the tech sector, are still in high demand, but buyers are more demanding; homes are spending a longer time on the market.” She adds: “This is also an election year, and historically, the market always goes down in election years. You can look it up!”
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