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Tag: Price

  • Opinion: Southern Californians shaped the nation’s biggest political problems. We can solve them too

    Opinion: Southern Californians shaped the nation’s biggest political problems. We can solve them too

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    Voters rank the economy and inflation as the most important issues facing the country, and in spite of good news on both fronts, discontent over pocketbook issues remains steady. There’s one stretch of Southern California where, one could say, that all began: Los Angeles’ harbor and coast.

    As the center for U.S. Pacific trade and an archetype for exuberant housing markets everywhere, the region’s waterfront clarifies why so many Americans feel frustrated and under pressure — and just how challenging it may be to fix this, no matter who becomes the next president.

    Stretching back to the mid-19th century, when the United States annexed Southern California from the Mexican Republic, Americans looked to Pacific trade and westward settlement to stabilize their nation. That’s why our local ports were developed.

    In the 1850s, a federal agency, then called the U.S. Coast Survey, identified San Pedro Bay as a focal point for shipping efforts. Since the 1910s, this has been home to the Port of Los Angeles and the Port of Long Beach, collectively the busiest shipping hub in the Western Hemisphere, making the region prominent in global supply chains and transpacific trade.

    Officials believed Pacific trade and settlement to be a safety valve for turmoil back East, that over slavery most of all. The results proved them wrong. Commerce and settlers intensified political conflict, both in Washington and in California, by increasing the stakes. Land speculators — in most places pushing out Indigenous people and Mexicans — looked to grab former rancho claims near California’s prospective harbors, in Southern California’s enviable climate. It was a rush for beachfront property like the region had never seen. Their actions set Los Angeles’ property lines and the basis for today’s real estate markets from Malibu to Newport Bay.

    This history was invisible to me as I grew up around L.A., but its effects were and are all around, continuing to reshape Southern California during my lifetime. By the early 2000s, container ships, larger than before, accumulated in the outer waters as the ports were sometimes overwhelmed. Semitrucks crowded the 110 and 710 freeways. At the same time, the coastal real estate market boomed yet again. My parents — new arrivals to the region — found it full of opportunity. They purchased their first and only home, in a subdivision on former rancho lands, and they paid it off as valuations exploded around them and their nest egg grew. The region’s economy was a dynamo, a safe harbor in more ways than one.

    Shipping and competitive real estate — two legacies of 1850s Southern California — remain with us. Moreover, they are part of an ongoing story of Los Angeles and its place in American life. Today’s voters’ sense of their economic well-being is based on the prices of household necessities, mostly imported goods, and about one-third enter the U.S. through the ports of Los Angeles and Long Beach. Historically, the ships and containers that crowd San Pedro Bay have expanded affordability, but the COVID-19 pandemic and international crises disrupted their flow. Suddenly transpacific trade was blamed for soaring costs, not credited with making household items affordable. Even after the disruption abated, high prices and memories of scarcity have lingered. Nationally, politicians and the public have come to doubt the virtues of globalization. The clash between high hopes for Los Angeles’ harbors and the realities of global trade contribute once more to Americans’ sense of an uncertain world, and once again the high stakes linked to Southern California’s economy feed into tensions nationwide.

    Sure investments, meanwhile, no longer offset troubled times. Americans’ primary investment — triumphant in the post-World War II era — is the single-family home. However, the nation’s high-priced real estate has unsettled this convention. Rather than absorbing newcomers and providing a path to financial security, it has multiplied voters’ sense of distress by locking many out of homeownership. The exhilarating prices and low interest rates of recent decades — profit and security to prior home purchasers — now put inflationary pressure on renters and prospective buyers, and on middle-income, low-income or young voters especially. This is most true around coastal Los Angeles, west and south of the 405 Freeway. It is true as well in markets farther afield, such as Phoenix and Las Vegas, long shaped by Southern California migrants and money.

    The Southland’s residents and visitors were drawn to the promise of Pacific waters, just as generations before have been. And while many in all eras have benefited from the region’s industries and real estate appreciation, many others have always been left behind. Remembering such connections with history can clarify uncertain times. Recent polarization in U.S. politics has been compared to the Civil War era, but there is perhaps a more apt parallel between today and the 1860s: the economic ideas of trade and land investment, intended to calm political passions and to distribute prosperity, fell short in both moments.

    The consequences will play out in the months ahead as pocketbook issues quite likely decide the presidential election. But regardless of the election’s outcome, we should understand that Southern California is never a place apart from U.S. politics and its dilemmas. Instead, these have deep roots in the region. And today, the region continues to invest in imports and real estate as vehicles for prosperity — even as the adverse costs accumulate in national politics.

    That makes Southern California the opportune place to resolve these dilemmas of history and to lead the U.S. forward, whether by policy experimentation or new principles for how wealth might be built, sustained and shared. Shaping the nation’s better future will involve tough choices. It certainly will take visionaries and daring. Yet that, too, is a legacy of Southern California’s past, one ready to be reclaimed.

    James Tejani, an associate professor of history at Cal Poly San Luis Obispo, is the author of “A Machine to Move Ocean and Earth: The Making of the Port of Los Angeles and America.”

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    James Tejani

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  • NC man had a hunch: Buy this $30 lottery ticket and win big. He hit the jackpot

    NC man had a hunch: Buy this $30 lottery ticket and win big. He hit the jackpot

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    A North Carolina man said an inner voice repeatedly urged him to buy a ticket in a $30 scratch-off game. It scored him a jackpot, officials said.

    A North Carolina man said an inner voice repeatedly urged him to buy a ticket in a $30 scratch-off game. It scored him a jackpot, officials said.

    N.C. EDUCATION LOTTERY

    A North Carolina man said an inner voice repeatedly urged him to buy a ticket in a $30 scratch-off game. He’s glad he listened, as the ticket landed him a $5 million jackpot, lottery officials said Thursday.

    A North Carolina man said an inner voice repeatedly urged him to buy a  $30 scratch-off ticket at this Food Lion store. It scored him a jackpot, officials said.
    A North Carolina man said an inner voice repeatedly urged him to buy a $30 scratch-off ticket at this Food Lion store. It scored him a jackpot, officials said. Street View image from February 2019. © 2024 Google

    “When I scratched it, I couldn’t believe what I saw,” the man said when he claimed his prize at lottery headquarters in Raleigh on Thursday, according to a lottery news release.

    Concord resident Eric Walker bought the 200X The Cash ticket from the lottery vending machine at the Food Lion on Main Street in Locust, officials said. Walker works at the store and bought the ticket before the start of his shift, according to the lottery.

    He beat odds of 1 in 2.96 million, according to the 200X The Cash page on the lottery website.

    He decided to receive the money in $250,000 annual payments for 20 years, officials said. He also could have chosen to take the jackpot as a $3 million lump sum, according to the lottery.

    After taxes, he took home $178,759, officials said. For the next 19 years, he’ll get a $250,000 check until the full $5 million prize is paid.

    “At the end of the day, taking the annuity made the most sense for us,” he said.

    Jackpot astonishes wife

    Walker won the first $5 million top prize in the game.

    “Something was just telling me to pick that ticket,” he said.

    He immediately called his wife.

    “She just kept saying, ‘What, what, what,’” Walker said.

    He will use this year’s winnings to pay off his mortgage and didn’t say what he might do with the rest of the money.

    The game started in March with five top prizes and 10 $100,000 prizes. Four $5 million prizes and nine $100,000 prizes remain to be won, according to the game page.

    Related stories from Raleigh News & Observer

    Joe Marusak has been a reporter for The Charlotte Observer since 1989 covering the people, municipalities and major news events of the region, and was a news bureau editor for the paper. He currently reports on breaking news.
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    Joe Marusak

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  • Uniswap Shoots Past $10 On 17% Price Explosion – Here’s The Trigger

    Uniswap Shoots Past $10 On 17% Price Explosion – Here’s The Trigger

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    In a week marked by consolidation across the cryptocurrency market, the native token of Uniswap, UNI, has defied the trend, surging over 15%, and surpassing the $10 mark. This bullish run comes amid positive developments within the Ethereum ecosystem and Uniswap’s ongoing legal battle with the US Securities and Exchange Commission (SEC).

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    Riding The Ethereum Wave

    Beyond the legal battle, the current momentum within the Ethereum ecosystem is also propelling UNI’s price upwards. On-chain data reveals significant whale withdrawals from crypto exchanges following news of a potential spot Ethereum ETF.

    This flight to safety, coupled with the overall bullish sentiment surrounding Ethereum, is creating a ripple effect that benefits UNI, a key player within the Ethereum DeFi landscape.

    From a technical standpoint, UNI’s breakout from a monthly consolidation phase paints a promising picture. Both technical indicators and on-chain data suggest a potential 25% price increase for UNI.

    Source: Lookonchain

    The token’s recent surge indicates a potential bull run, with analysts eyeing a price target of $12.80 if the current momentum continues.

    Adding fuel to the fire is Santiment’s Age Consumed index, which measures the movement of dormant tokens. Spikes in this index often precede price rallies, and the latest uptick by the latter part of April seems to have foreshadowed UNI’s current uptrend.

    This on-chain metric reinforces the bullish outlook for UNI, suggesting that investors are awakening to its potential.

    Short Sellers Get Burned As Bulls Take Charge

    The recent price rally has also been accompanied by a significant rise in trading activity. Data from Coinalyze reveals over $1 million in Uniswap liquidations in the last day.

    The majority of these liquidations (over $750,000) were short positions, indicating that traders betting against UNI are feeling the heat. This surge in open interest, with more traders going long on UNI, further strengthens the bullish control over the token’s price.

    UNI is currently trading at $10,8. Chart: TradingView

    Uniswap Takes A Stand Against The SEC

    This display of defiance has instilled confidence among investors, who view it as a positive sign for Uniswap’s future. The popular decentralized exchange (DEX) recently received a Wells notice from the regulatory body, alleging that UNI is a security. However, Uniswap has vowed to challenge this claim, asserting that the SEC’s case is weak.

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    The SEC case against Uniswap remains unresolved, and a negative outcome could dampen investor sentiment. A broader market correction could still impact UNI’s price.

    Featured image from Wallpapers, chart from TradingView

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    Christian Encila

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  • The Gilded Age Heiress Who Helped The Marijuana Movement

    The Gilded Age Heiress Who Helped The Marijuana Movement

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    Shows like Downtown Abbey, Palm Royale, and more have showed the  big, big rich lives – and a few even touched the marijuana counterculture movement.

    It seems we can’t get enough about the lives of the very rich. Shows including Downtown Abbey, Succession, the Gilded Age, and Palm Royale are all over and people are loving it. Ryan Murphy has done well and is just off his latest series Truman Vs.The Swans.  All of this highlights the extremely well to do and how they live life.  But did you know about the gilded age Heiress who helped the marijuana movement?

    RELATED: Beer Sales Flatten Thanks To Marijuana

    The Mellon family is in the rare category of being big then and still today. On the East Coast they continue to still have pull and cache like the “new money” Gates, Zuckerberg and Bezos.   An old family from Pittsburgh, they made the start of it all in banking, the Mellon in today’s BNY Mellon. The family includes Andrew Mellon, one of the longest serving Treasury Secretaries, along with famous members in the judicial, banking, financial, business, and political professions.  Bunny Mellon was one of the great philanthropists and art collectors.  A dear friend of Jackie Kennedy Onassis, she designed a number of significant gardens, including the White House Rose Garden

    But it was Peggy Mellon Hitchcock, another Mellon heiress who helped the counterculture. Her mother was a Mellon and her father, Thomas Hitchcock Jr., was a leading polo player and a partner at Lehman Brothers.  Peggy was a spitfire and was as comfortable in the family’s many homes as in a smokey jazz club with artists. Spirited and fun she was always open to what’s new and what’s next.  She had an unlikely relationship with Timothy O’Leary. She persuaded her brothers to let O’Leary have use of their joint family estate Daheim (also known as Millbrook or the Hitchcock estate).

    RELATED: Cannabis Industry Employs The Same As These Companies

    For 5 years, O’Leary, thanks to Peggy lived like a king and had guests including Allen Ginsberg, Charles Mingus, and R. D. Laing to the old monied manse. What went on is the stuff of legends with a blend of art, marijuana, money, new ideas, psychedelics, music and love. The The New York Times’ Luc Sante, described it as “a period filled with endless parties, epiphanies and breakdowns, emotional dramas of all sizes, and numerous raids and arrests.” Nina Grabol shared it was “a cross between a country club, a madhouse, a research institute, a monastery, and a Fellini movie set.”

    Peggy was responsible for helping the counterculture rest, regroup, and move forward.  Who knew this would be the early path to rescheduling?

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    Sarah Johns

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  • Duke Energy Florida to Reduce Rates for Second Time This Year

    Duke Energy Florida to Reduce Rates for Second Time This Year

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    For the second time this year, a typical Duke Energy Florida customer will see lower electric bills, this time because of a rate reduction the company is proposing to begin in June to reflect anticipated lower fuel prices.

    The company filed a fuel midcourse rate request with the Florida Public Service Commission to account for lower projections for natural gas costs.

    Under the proposal, a typical Florida residential customer with a monthly usage of 1,000 kWh would see their bill decline by $5.90, or almost 4%. The savings would be on top of a $11.29 decrease, or about 6%, a decrease that typical residential bills began showing in January.

    Similarly, typical commercial and industrial customers will see a bill decrease between 3.5% and 7.0%, varying based on factors, such as industry type and differences in customer use patterns.

    “With fuel prices expected to decline, we have an opportunity to lower rates for a second time this year for our customers, just as we prepare for the higher energy usage that come with summer months,” said Melissa Seixas, Duke Energy Florida state president. “We remain committed to providing the best possible price for Florida’s growing population, while delivering the reliable power and customer service our customers deserve today, tomorrow and for many years to come.”

    Duke Energy Florida ensures customers receive the best service to their homes, businesses and communities through expertly managing its fuel resources, and its complex systems of power generation, transformers, wires and poles across 13,000 square miles – 24 hours a day, 365 days a year, under the most challenging conditions.

    The company also offers several easy-to-use energy efficiency programs and tools to help Florida customers have more control over their energy use and bills.

    Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida.

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  • All-cash offers, wealthy buyers push Southern California home prices to a record

    All-cash offers, wealthy buyers push Southern California home prices to a record

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    Southern California home prices hit a record in March amid sky-high mortgage interest rates, a combination that’s creating the most unaffordable housing market in a generation.

    The average for the six-county region reached $869,082 in March, according to Zillow. That’s up 9% from a year earlier and 1% higher than the previous all-time high in June 2022.

    With rates hovering in the upper 6% range, the mortgage payment on the average home now tops $5,500 — if you can put 20% down.

    “It’s bananas,” Tommy Kotero, a 43-year-old refinery worker, said last weekend after touring a dated, $899,000 house in north Torrance with visible cracks in the ceiling and walls. “The asking prices for what we are getting is crazy.”

    How home prices hit a record despite the high cost of borrowing is a tale of too few homes for sale, combined with a wealth gap that has equipped some buyers with reams of cash that negate the effect of high rates.

    When interest rates first soared in 2022, buyers backed away en masse, inventory swelled and home prices dropped.

    Then potential sellers all but went on strike, with many deciding they didn’t want to move and trade their sub-3% mortgages for a loan at more than double that rate.

    Inventory plunged and enough buyers returned to send home prices back up. Many of these buyers are well-heeled first-timers who aren’t ditching a low-cost mortgage.

    Others are holding on to their old home and buying another. Still more are selling their old home and turning their considerable equity into hefty down payments well over 20%.

    “People who have cash are not paying too much attention to interest rates,” said Alin Glogovicean, a real estate agent with Redfin who specializes in northeast L.A.

    He estimates that in about one-third of his deals a buyer is paying all cash. Another third put down at least 50%, with a mortgage on the rest.

    At least two-thirds of the buyers with down payments of at least 30% aren’t investors but people who want to live in the home, he said. They are professionals such as architects and Hollywood types who have saved, liquidated stock portfolios, built up equity or received help from family.

    Some are willing to dip into retirement savings — a strategy many financial experts advise against.

    Nationally, similar trends are afoot, according to a Zillow survey, with the share of home buyers putting at least 20% rising, as well as those who received help from family and friends.

    In all, 23% of L.A. County homes sold in February were bought with all cash, up from 16% in 2021, according to Redfin.

    For those without access to a spare half-a-mill, times are tougher.

    According to the California Assn. of Realtors, only 11% of households in Los Angeles and Orange counties could reasonably afford the median-priced house during the fourth quarter, the smallest number since the housing bubble of the mid-aughts.

    At that time, risky lending practices allowed people to buy homes they couldn’t really pay for. Today, lending standards are far tighter, which economists say should prevent a similar collapse in prices if there’s another recession.

    Across the region, home prices have now set records in Orange, San Bernardino, San Diego and Ventura counties. In Los Angeles and Riverside counties, prices are less than 1% from their all-time highs.

    Agent Alicia Fombona of United Real Estate Pacific States works across the Southland — from the coast to the Inland Empire. Amid high rates and high prices, she said, one strategy that’s growing more popular is co-borrowing: family and friends coming together to buy a house or duplex to keep payments somewhat affordable.

    “Everybody needs a place to live and there is not enough housing for everybody,” Fombona said.

    More homes are starting to come onto the market, but inventory is still tight and expected to remain so, according to forecasters. Rates may drop somewhat but are expected to remain elevated.

    That combination could create a scenario in which prices don’t soar but also don’t drop much — if at all, especially because incomes for many households are growing.

    “We are going to continue to see robust price growth, but nothing near where we were in the pandemic,” said Orphe Divounguy, a senior economist with Zillow.

    If rates fell considerably, it would immediately make homes more affordable, but a new crop of buyers probably would flood the market and could put even more upward pressure on prices.

    To help housing truly become more affordable, Divounguy said, there must be continued income growth and more housing construction.

    “The way out of this is not going to come from mortgage rates,” he said.

    In California, construction headed in the wrong direction in 2023, with building permits falling from the previous year, though lately there are signs of a rebound in single-family construction, which is mostly for-sale homes.

    Some Californians, however, are on a timeline.

    Kotero, the buyer looking in Torrance, currently rents a house in the city with his wife, Rikah, and their four children. But he said they need to find a new place by summer because the landlord is moving back in.

    They’d like to buy and stay in Torrance for the schools but so far have struck out — even though Kotero makes $160,000 as a manager at a local oil refinery.

    He said he and his wife were recently outbid, despite stretching their budget to offer $1 million for a house listed for $900,000.

    Unlike others, the Koteros don’t have hundreds of thousands in cash to meaningfully offset high rates. Instead, Rikah, who currently stays home with the children, is thinking of looking for a job.

    “If we are realistically looking to buy a home in Torrance, there’s no way around it,” Kotero said.

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    Andrew Khouri

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  • L.A. City Councilmember Curren Price accused of 21 violations of city ethics laws

    L.A. City Councilmember Curren Price accused of 21 violations of city ethics laws

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    The Los Angeles City Ethics Commission has privately accused City Councilmember Curren Price of voting on a number of matters in which his wife had a financial interest, echoing charges filed last year by L.A. County prosecutors, according to two sources with knowledge of the situation.

    The commission, which has the power to enforce conflict-of-interest laws, notified Price of the accusations last week, according to the sources, who requested anonymity because they were not authorized to speak publicly about the matter.

    One of the sources said the filing accuses Price of 21 violations of the city’s ethics laws, many of them similar to those filed by Los Angeles County Dist. Atty. George Gascón against Price last year.

    In the criminal case, Price is accused of voting to support projects for developers that had done business with a consulting company founded by his wife, Del Richardson Price, who specialized in tenant relocation services. He faces five counts of embezzlement, two counts of conflict of interest and three counts of perjury.

    The allegations from the Ethics Commission mostly involve violations of conflict-of-interest laws or the council member’s failure to fully disclose economic interests he held in relation to Richardson Price’s business, according to one of the sources.

    Ethics Commission spokesperson Nancy Jackson said this week that city law bars the department from confirming or denying the existence of a complaint or investigation.

    A spokeswoman for the district attorney’s office and an attorney for Price declined to comment.

    The violations alleged by the ethics commission cover a larger span of time than the criminal complaint, which focuses on the period between 2019 and 2021, one source said.

    In a court filing earlier this year, L.A. County Deputy Dist. Atty. Casey Higgins made references to other instances where Price allegedly had a conflict, voting on projects whose developers paid Richardson Price as far back as 2015. It was not clear why those instances did not result in criminal charges.

    The Ethics Commission typically holds an evidentiary hearing after an accusation is publicly issued. Commission members then determine whether the alleged violations occurred and, if so, what penalties should apply. The document Price was served with is known as a “probable cause report,” the sources said.

    In the criminal complaint filed last year, prosecutors alleged Price voted on matters connected to his wife’s business and perjured himself by failing to reveal his financial interest in those matters on disclosure forms that must be filed with the city.

    Prosecutors said Price voted on two affordable housing projects whose developers paid his wife more than $150,000 between 2019 and 2021. Neither project is in Price’s district. One is on the Westside, and the other is in South Los Angeles.

    Price also faces embezzlement charges for obtaining spousal health benefits for Richardson Price through the city while he was still legally married to his first wife.

    Last year, some of Price’s allies said they believed the allegations against him should have been handled by the Ethics Commission, not the district attorney’s office.

    Price has repeatedly declared his innocence. His lawyer has said that prosecutors failed to show that the developers’ payments to his wife’s consulting company had any influence on his votes on those projects. The votes cast by Price were routine and noncontroversial, on proposals that passed by large majorities, according to Price’s lawyer, Michael Schafler.

    A judge rejected Price’s bid to have the case thrown out earlier this year. A trial date has not been set.

    Last month, a former aide to Price filed a civil claim against the city alleging the council member’s staff harassed her on the belief that she was a “snitch” and had cooperated with the district attorney’s investigation. The woman, Hawthorne City Councilmember Angie Reyes English, said she suffered retaliation at work and ultimately was fired in January, according to the suit.

    Her attorney, Greg Smith, told The Times that Price’s office had the false opinion that Reyes English was a whistleblower who went to the district attorney.

    A spokeswoman for Price has denied Reyes English’s allegations.

    At a court hearing earlier this month, Higgins expressed concern that Price and his allies might be improperly interacting with witnesses in the case. Higgins said he had received information that Richardson Price “hired lawyers for witnesses,” including one person who is now refusing to speak with prosecutors.

    “That raises some concerns for us … they shouldn’t be talking to any potential witnesses except for an attorney of record,” Higgins said.

    Richardson Price didn’t respond to requests for comment.

    Schafler, the attorney for Price, denied “the suggestion of any impropriety relating to any witnesses in this case.” He declined to say if Richardson Price had actually retained counsel for any potential witnesses.

    Price is one of several city council members to face criminal charges in recent years. In 2020, former Councilmember Mitchell Englander pleaded guilty to providing false information to federal investigators. He served a short stint in prison.

    Former Councilmember Jose Huizar was recently sentenced to 13 years in prison after pleading guilty to racketeering and tax evasion charges. Meanwhile, a jury convicted former Councilmember Mark Ridley-Thomas of bribery, conspiracy and mail fraud charges last year. He has appealed the verdict.

    The Ethics Commission has a separate case against Councilmember John Lee, who has been accused of violating laws regulating the acceptance of gifts and the reporting of those gifts. Lee has been fighting that case, which could result in financial penalties.

    Voters in his northwest San Fernando Valley district reelected Lee to another four-year term earlier this month.

    Price is due back in court in late April, when the Los Angeles city attorney’s office is expected to try to quash a subpoena from prosecutors seeking communications between the city attorney’s office and Price. The city attorney’s office has argued the materials are protected by attorney-client privilege.

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    James Queally, David Zahniser, Dakota Smith

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  • Australian Endometriosis Patients Find Relief Through MMJ Despite Cost Barriers | High Times

    Australian Endometriosis Patients Find Relief Through MMJ Despite Cost Barriers | High Times

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    Using cannabis for pain relief is nothing new. Across the U.S., most states include chronic pain as a qualifying condition for medical cannabis.

    Looking broader, individuals around the globe are already embracing cannabis for these pain-relieving qualities alongside the additional benefits it may offer. While we’re still learning exactly how cannabis can work to treat symptoms and provide relief for specific conditions, many are taking matters into their own hands with promising results — and these trends could very well help to shape further research and policy.

    A recent survey published in the journal Obstetrics & Gynecology took a closer look at symptom management pertaining to cannabis and endometriosis, finding that patients often turn to cannabis to alleviate their symptoms despite ongoing barriers to access.

    Cannabis Use Among Endometriosis Patients

    Endometriosis is a condition where tissue similar to the lining of the uterus grows outside of the uterus, generally resulting in severe pelvic pain and inflammation. The tissue acts in the same way as the lining inside the uterus, thickening, breaking down and bleeding with each menstrual cycle. Endometriosis involving the ovaries can also result in cysts, causing surrounding tissue irritation and formation of scar tissue.

    Endometriosis can start at the time of a person’s first menstrual period and last until menopause. We still don’t know what causes endometriosis, there is no way to prevent it and there is no cure. However, there are a number of treatments to help ease the related symptoms. Some opt for surgery to remove lesions, while many embrace hormonal intrauterine devices, birth control methods, opioid-based pain medications and more for ongoing relief.

    That said, we can safely add cannabis to the list of modern-day treatments given its prevalence of use.

    In the survey, Australian researchers examined the perspectives of 192 people with a history of cannabis use and endometriosis. Noting it as a “very expensive disease, with substantive out of pocket costs for pain and symptom management,” researchers reference cost and accessibility to cannabis-based medicinal products (CMBPs) as a primary focus of the survey. They also cite the lack of information surrounding ideal products, modes of administration and efficacy in current research.

    Researchers gathered data through an online survey of Australian and New Zealand residents, via social media and community-based advocacy platform Cannareviews.co. Respondents included those using either illicit cannabis or legal CMBPs prescribed by a doctor to manage endometriosis and chronic pelvic pain-related symptoms. However, the published report only includes data from Australian respondents. 

    The survey found that THC-dominant CBMPs are most commonly prescribed to Australians with endometriosis, noting multi-product use as a common trend with most people reporting the use of at least two products. For those with only one prescription (23%), it was almost always a THC-dominant product. 

    Most respondents (59.4%) said they used cannabis recreationally and for endometriosis symptom management, though many exclusively used cannabis to manage symptoms (40.1%).

    Patients reported improvements in common endometriosis symptoms through the use of legal CBMPs, specifically sleep (68.9%), chronic pelvic pain (44.5%), nausea (47.9%), anxiety/depression (45.4%) and menstrual pain (38.7%). 

    They also reported a reduction in the use of opioids, hormonal treatments, non-steroidal inflammatory drugs, neuroleptics and illicit cannabis. 

    Oils and flower were the most common product types, illicit or legal.

    Examining Cost and Access to Cannabis Medicines

    The results also pointed to legal, THC-dominant cannabis medications being more expensive than illicit “equivalents” and that the extra cost for legal access often led to people underdosing (76.1%) or resorting to illicit cannabis to “bridge the gap” and easen cost burdens (42.9%).

    Researchers note that relying upon illicit cannabis products can lead to inadequate symptom management, using products that have not been tested for safety and quality and of course associated legal ramifications.

    Nearly all (96.3%) respondents said that their cost burden would be substantially reduced if CBMPs were a Pharmaceutical Benefits Scheme (PBS) listed and subsidized product. 

    The bulk of respondents said they would consider moving insurers if they found out their private health insurance would not reimburse the cost of cannabis medicine as well — 60.9% said maybe, depending on other factors; 20.3% said yes, so long as the premium was the same price or less; 11.7% said yes, even if the premium was higher; only 7% said no.

    Researchers said that patients’ willingness to switch insurers based on this variable “speaks to the pivotal nature of cost concerns (and perceived effectiveness) relating to affordable access to cannabinoids.” Additionally, they state that the results suggest a need for a greater response from insurers in the country.

    “Given the lack of well-tolerated alternatives for medical management of endometriosis, this is an equity issue that urgently needs addressing,” they add.

    Limitations and Looking Ahead

    Researchers note that self-reported nature of cost, diagnosis and product consumption as a limitation. They also cited the potential for their recruitment methods — through social media and Cannareviews’ patient base — to produce recall and selection bias, as participants may have either had more severe impacts to quality of life or a more positive experience with illicit or medicinal cannabis than the broader population.

    Still, the data affirms that many are already finding relief and relying on cannabis treatments for endometriosis, highlighting the need for better access.

    “Given major issues with symptom management and the self-reported reductions in pain and other symptoms, improving access to medicinal cannabis for this population is important and timely,” authors conclude. “Reductions in cost of both product and consultations, as well as coverage by insurance are areas which need addressing.”

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    Keegan Williams

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  • Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is

    Opinion: Inflation isn’t the real problem for the U.S. economy. The housing shortage is

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    Recently released government data hammered home what we have known for at least a year: A national housing shortage, not broad-based price increases, is driving inflation.

    Inflation over the past year was 3.1% — far less than in 2021 but still high enough for the Federal Reserve to keep interest rates elevated. However, unlike the inflation we saw soon after the onset of the pandemic, the more recent bout was overwhelmingly driven by the rising cost of what the Consumer Price Index classifies as “shelter” — including rent actually paid and the estimated rent that could be charged for owner-occupied homes.

    Since the start of last year, most prices have risen very slowly or not at all. The price of goods — the tangible things we buy — remained essentially the same, rising just 0.1%. Food inflation, a source of post-pandemic pain for many households, was less than 3%. And other categories of prices actually fell: Household energy prices are down 2.4%, and the price of cars has fallen just over 1%. All told, for everything other than housing, inflation was just 1.5% — low enough that if housing prices had grown at historical rates, the Fed could have declared victory.

    But housing costs have not grown at historical rates: The two-year price increase came in hotter than at any point in the past four decades. This lopsided picture tells us a lot about who is most affected by inflation and how it should be addressed.

    The outsize role of shelter inflation means that homeowners and renters whose leases haven’t changed are experiencing inflation very differently from those who were more exposed to rising housing costs. Indeed, rising housing costs are a double-edged sword, increasing the wealth of homeowners even as they punish many renters. Since the beginning of 2022, housing wealth has added over $2 trillion to homeowners’ balance sheets.

    This trend has important implications across generations. People under 35, with a homeownership rate roughly half that of those of retirement age, are much more likely to suffer from rising housing costs while also missing out on the resulting wealth boom. Retirees, with rising housing wealth and protection from inflation through Social Security and Medicare, are more likely to fare better.

    The remedy for housing-fueled inflation is also different from standard responses to broad-based price growth. One might have expected the Fed’s interest rate hikes — which caused mortgage rates to rise with unprecedented speed — to slow down housing prices. But while prospective homebuyers did pull back from the market, residential listings were in free fall during the pandemic and have yet to recover. That means would-be buyers face tight inventories and higher prices.

    The only effective long-term answer is of course to build and rehabilitate more housing — a lot more. America’s housing crisis is a big problem that requires an equally big solution, with various estimates putting the nationwide shortfall between 1.5 million and 5.5 million units.

    Legislation passed by the House in 2022 would have made meaningful progress by allocating around $40 billion to supply-boosting programs such as the Housing Trust Fund, the Low-Income Housing Tax Credit and HOME Investment Partnerships Program block grants. Unfortunately, the bill fell short in the Senate and is effectively dead until at least the next Congress.

    In the absence of major legislation in Washington, state and federal policymakers have been increasingly focused on incremental responses to the shortfall. The Biden administration recently announced a series of reforms — including grants for low-income seniors and funds to help rehabilitate manufactured homes — that will add tens of thousands of new homes to the market. An array of bills passed in Sacramento in recent years will help expedite new housing in California, where the shortfall of about 1 million units is nearly three times the next-largest state housing deficit. But the data show we still need to do much more to ease and encourage building to tame shelter costs.

    Fed Chair Jerome Powell and the Federal Open Market Committee have made it clear that they will do whatever it takes to fight inflation. That’s an admirable and responsible position. But Congress has yet to help by addressing our national housing shortfall. If it had, pandemic-era inflation might already be behind us.

    Ben Harris is the vice president and director of the Economic Studies Program at the Brookings Institution and was a longtime economic advisor to President Biden.

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    Ben Harris

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  • Rents are finally falling — but not in Orange County. People are feeling the pain

    Rents are finally falling — but not in Orange County. People are feeling the pain

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    While rents in Los Angeles and many other parts of the U.S. have dropped or stabilized in recent years, Orange County tenants have seen no such relief, with rents that have either spiked or held firm since the start of the pandemic.

    The changes reflect a national trend, according to experts. Demand for housing in urban centers including Los Angeles dropped as people flocked to suburbs such as Orange County’s after the pandemic struck because many office staffers were allowed to work remotely.

    Los Angeles County cities including Burbank, Long Beach, L.A., Santa Monica and West Hollywood have recorded median rent prices that are 3% to 5% lower than they were this time last year, according to data from the rental site ApartmentList.com.

    But prices are moving in the opposite direction in Orange County. Overall rents in L.A. County are down 2.6% over last year, while Orange County prices are up 2.2%, according to Apartment List.

    As rents in the U.S. are down 1% overall from last year, “denser urban areas have seen much slower rent growth,” and rentals in outlying and suburban areas have “sustained a pretty strong upwelling of demand” since the COVID-19 pandemic began, said Rob Warnock, a researcher at Apartment List.

    But since the pandemic started, rents have fluctuated in L.A. County, dropping 7% in 2020 only to rebound 15% in 2021, and then rising modestly in 2022 before dropping in 2023.

    In Orange County, prices never dropped — not even in 2020, though they remained flat. In 2021, they skyrocketed 22% before leveling out in 2022 and increasing modestly in 2023, according to Apartment List.

    María Alejandra Barboza, a community tenant counselor in Anaheim and Santa Ana, said that her friends and neighbors are being squeezed by the increases.

    Barboza, 56, sees rents continuing to dominate people’s budgets as salaries fail to keep up.

    In Anaheim, the median rent for a one-bedroom unit was nearly $2,000 in February, according to data from Apartment List. That was up 1.2% from the same month last year.

    In Santa Ana, rents were comparable, and up 1.6% over a year ago.

    When Barboza recently visited a friend’s home, she was impressed by new kitchen cabinets. Her friend explained that the cabinets were part of a renovation triggered by the sale of her building.

    The new owner made the family move out for a month while continuing to pay rent, according to Barboza.

    “They were not given any compensation,” she said. Upon returning after a month away, the family found their rent had increased from $1,460 to $3,200 — more than doubling.

    She heard similar stories from others who had already been forced out of the building by higher rents.

    “We continually see the displacement of entire families,” Barboza said, adding that stories of housing loss are a constant in her community.

    California has always had high demand for housing in major cities, said Hanna Grichanik, a financial advisor in Los Angeles.

    Her clients are seeing rent increases slow down, though not disappear entirely, she said.

    “L.A.’s always been a very inflated market, and it could be that other places are catching up” as density increases elsewhere, she theorized.

    Santa Clarita is a notable outlier in Los Angeles County, with the median one-bedroom apartment renting for just over $2,000 and prices up almost 4% over last February.

    Grichanik tells her clients that there is “room to negotiate with your landlords,” who “don’t want to have turnover — that’s costly for them.”

    She acknowledges that the typical goal of allocating 30% of income to rent “probably works in Nebraska, New Mexico, but it’s very hard for people in California.”

    Back in Orange County, advocates seek to protect tenants however they can as prices go up.

    David Levy, a housing specialist at the Fair Housing Council of Orange County, praised California’s Tenant Protection Act of 2019, which requires just cause to terminate a rental agreement. Causes include failure to pay, breach of terms, nuisances and criminal activities. The law also caps rent increases for certain tenants at 10%, or at 5% above the annual change in cost of living, whichever is lower.

    But Levy believes lawmakers can do more to protect tenants.

    Santa Ana is the only city in Orange County with its own rent-control law, he said, so most cities rely on the statewide rules.

    Since the end of August, landlords in Los Angeles and Orange counties have been capped at 8.8% rent increases annually in applicable units.

    While he appreciates the cap, “even an 8.8% increase is a hard hit for some people,” Levy said.

    Barboza, the community tenant counselor, continues to press legislators for a solution and to help those around her.

    “Many people in the community do not know what their rights are and how to defend them, in the face of frequent abuse,” she said.

    Barboza has heard countless stories of lives disrupted by the lack of affordable housing in Orange County.

    When rent gets too high for them, she said, people are not only forced to leave their homes, but “children have to leave their schools” and “parents are separated from their source of income.”

    In Barboza’s community, she said, “the greed of a few negatively impacts the lives of many.”

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    Terry Castleman

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  • Fans and resellers wait in overnight lines for Stanley cups. Here's what's behind the craze

    Fans and resellers wait in overnight lines for Stanley cups. Here's what's behind the craze

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    The craze has prompted long lines outside of Target stores in the dead of night. Ugly fights have broken out. Shouting matches have erupted. All this hubbub over Stanley cups.

    No, not the Stanley Cup awarded to the National Hockey League champion. We are talking about the insulated steel tumblers sold in various colors at Target and Starbucks.

    On a recent Friday afternoon, Target shelves in L.A. County were barren, devoid of cups. Surprisingly, there haven’t been reports of people resorting to violence to secure the coveted item, but at least one online video shows a man trying to make a quick getaway from a Target store with a tumbler under his arm, only to be tackled by what appear to be furious shoppers.

    It’s not clear how the frenzy started, but it seems to follow the pattern of merchandise mania like the plastic Disney popcorn bucket in the shape of a dragon in 2022, the PlayStation 5 in 2020 and the Popeyes chicken sandwich in 2019.

    Collectors and sellers of the tumblers suggest that the craze has been fueled by the manufacturer’s marketing strategy, the collaboration with popular companies like Starbucks, the designer colors and a sense that ownership conveys status and exclusivity.

    Influencers on TikTok and other platforms have contributed to the mania by posting catchy videos of the tumblers.

    But what likely sparked the latest viral popularity was the November TikTok video of a woman’s car that caught fire; her Stanley cup not only survived but kept her beverage cold. The video has had nearly 94 million views. In response, the Stanley company offered to replace not only the cup but her car.

    Stanley insulated cups are not new, having been invented by William Stanley Jr. in 1913. But with a dedicated fan base on TikTok, various styles and prices ranging from $20 for a 14-ounce cup to $60 for a 64-ounce version, anything Stanley is hard to come by.

    Spokespersons for Target and Stanley could not be reached for comment on the craze.

    The most sought-after Stanley cups are the Winter Pink Starbucks collaboration, which have a slight shine in the proper lighting. The cups are fetching upward of $400 on the resell market, according to EBay auctions.

    Also popular are Cosmic Pink or Target Red, featured in Target’s “Galentine” collection released Dec. 31, which swiftly sold out online and in stores. On EBay, they are selling for nearly $100.

    One anonymous employee in a Hawthorne Target noted that the store received a shipment of the pink tumblers on Thursday and sold out within two minutes.

    A recent viral TikTok shows a crowd rushing to secure a pair, prompting staff to issue warnings about the per-person limit. The video has garnered 20 million views, and the hashtag #StanleyTumbler has accumulated more than 1 billion impressions.

    Inglewood resident Ubaldo Rene Rodas was introduced to the Stanley trend by his younger sisters, who sent him TikTok videos of people discussing the cups, showing them off and even engaging in fights during sales drops. He attributes the craze partly to the limited availability, which makes the cups something of a collectible.

    Rodas quickly became a reseller, taking advantage of the surging demand.

    He listed both versions of the limited-edition, pink Galentine cups at $100 each on the Facebook Marketplace, marked up from the original price of $45. He recently sold 10 Cosmic Pink Stanleys to a buyer who wanted them for a gender-reveal party.

    Through the Facebook Marketplace group, he recently learned that more cups would go on sale at 1 a.m. on Target’s website.

    “So I bought 20 of the Cosmic Pink and 20 of the Target Red, the max you could order, just to try and sell,” he said.

    Rodas is not a fan of camping out for hyped items due to the frustration and anger that can arise.

    “My sisters had asked me to camp out for the Starbucks Winter Pink Stanley, but I said no since I didn’t want to put them in harm’s way,” he said. “If they restock, I might grab more of the pink color, since they are doing the best. But I’ll go on to the next hyped color once Valentine’s Day passes.”

    After a recent collaboration between Stanley and country music star Lainey Wilson sold well, Danielle Williams, a reseller in Bellflower, hopped on the trend and started paying closer attention to the market. She has priced the cups at $90 to $110. She said they project a sense of status, like an exclusive club.

    Williams secured the cups on Target’s website, avoiding the overnight lines outside. She said it seemed as though the people camping out were “working harder, not smarter.”

    Since joining the craze, she has sold nearly 50 cups and has no plans to stop.

    “I just hope the hype train lasts on these Stanleys, and they don’t fizzle out like other trendy items,” Williams said.

    Partly due to its TikTok popularity, Stanley has reported a $676 million increase in revenue over the past four years, according to CNBC.

    The craze was noted by the Advertising Specialty Institute, a researcher in promotional products, which declared the Stanley Quencher the most coveted product of 2023. The institute noted that the 40-ounce Quencher H2.0 FlowState tumbler quickly rose to prominence as the epitome of drinkware trends, gaining attention as a viral TikTok sensation.

    “The Stanley Quencher is a slam-dunk choice, as well as the exclamation point to drinkware’s incredible run this past decade,” said ASI Editor in Chief C.J. Mittica.

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    Anthony De Leon

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  • Record deals and tax-avoidance maneuvers: Southern California’s priciest sales of 2023

    Record deals and tax-avoidance maneuvers: Southern California’s priciest sales of 2023

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    Southern California’s luxury real estate market never sleeps. But this past year, it collectively caught its breath.

    Luxury sales slowed down in 2023 — a combination of soaring interest rates, a newly introduced “mansion tax” and an inevitable drop-off from a pandemic market when megamansions flipped like hotcakes.

    In 2022, there were 17 home sales above $50 million and 48 over $30 million in L.A. County, according to the Multiple Listing Service. In 2023, there were only five sales over $50 million and 23 over $30 million.

    But even in a down year, there were still plenty of headlines. Jay-Z and Beyoncé set the all-time price record in the state of California, while other celebrities sold homes and left L.A. just in time to avoid paying taxes under Measure ULA.

    Here are the top sales of the year.

    $200 million

    Bought for $200 million, the 40,000-square-foot mansion overlooks the ocean in the affluent enclave of Paradise Cove.

    (Google Earth)

    History was made in May when Jay-Z and Beyoncé shattered California’s price record, paying $200 million for a concrete compound in Malibu.

    The L-shaped house, which topped the previous record of $177 million, looks more like an airplane hangar or supervillain’s lair than a home. It was built by Tadao Ando, a decorated Japanese architect who also designed a home for Kanye West a few miles down the coast. Ando brought in 7,645 cubic yards of concrete to erect the 40,000-square-foot home.

    It never officially hit the market, so photos are scarce. The property is perched above Malibu’s Paradise Cove and features concrete hallways and walls of glass that open to a swimming pool and lawn overlooking the ocean.

    $60.85 million

    Another power couple — Jennifer Lopez and Ben Affleck — claimed the second-highest home purchase of the year when they shelled out $60.85 million for a five-acre spread in Beverly Crest. High interest rates weren’t a problem; they didn’t need a 30-year-fixed. The pair paid in cash.

    The deal marked the end of a year-long house hunt for Lopez and Affleck, and the house boasts an array of amenities that few other mega-mansions can match. Across 38,000 square feet are 12 bedrooms, 24 bathrooms, 15 fireplaces, a movie theater, wine cellar, nail salon and sauna, as well as a 5,000-square-foot sports facility with a boxing ring and pickleball court.

    The $60.85-million sale actually came at a discount; the home originally hit the market with a gargantuan price tag of $135 million.

    $55 million

    A mansion surrounded by an expansive lawn.

    Built in 2014, the European-inspired mansion comes with 12 bedrooms, 20 bathrooms, a skate park, movie theater and grotto.

    (Anthony Barcelo)

    Some scratched their heads when Mark Wahlberg unloaded his Beverly Park mega-mansion for $55 million in February. The movie star spent years designing the French-inspired palace, and he originally asked $87.5 million when he first listed it in 2022.

    But Wahlberg was a motivated seller. He moved to Nevada last year, and by selling the home in February, he avoided Measure ULA, a transfer tax that took effect April 1 and would’ve charged a 5.5% tax on the sale. At $55 million, Wahlberg’s tax bill would’ve been more than $3 million.

    The European-inspired showplace is truly one of a kind, featuring amenities such as a five-hole golf course, driving range, grotto-style swimming pool and skate park. Wahlberg, a native of Massachusetts, also added a Boston Celtics-themed basketball court during his stay.

    $52.056 million

    Malibu’s second entry on this list comes via attorney Stuart Liner and his wife, Stephanie Hershey Liner, who sold their beach house on Point Dume for just over $52 million.

    The Liners have made a fortune flipping houses over the years, including doubling their money on a house they bought from actor Danny DeVito. They scored a hefty profit here as well; records show they paid $21.758 million for the oceanfront home in 2020 before extensively remodeling the place.

    The 6,000-square-foot house comes with a swimming pool and tennis court. It sold to Tom van Loben Sels, a partner at Bay Area tax firm Apercen Partners.

    $52 million

    A mansion fronted by a circular drive with a fountain.

    Built in 1998, Villa Firenze combines three lots across nearly 10 acres and centers on an Italian-inspired mansion.

    (Hilton & Hyland)

    For years, Villa Firenze was a cautionary tale, an extravagant reminder that while fortunes can be won in Southern California’s lucrative real estate market, you have to be strategic in how you sell to truly cash in.

    Hungarian billionaire Steven Udvar-Hazy was not. The airplane mogul built the Italian-inspired mansion in 1998 and listed it for $165 million in 2017, which at the time was one of the most ambitious asking prices in California history.

    Clearly overpriced, the house sat on the market for years until it was auctioned off for $51 million in 2021 to biotech entrepreneur Roy Eddleman, who, for some reason, tried the same thing as Udvar-Hazy.

    Eddleman quickly attempted to flip the house for a massive profit, putting it back onto the market for $120 million just a year after he bought it. Unsurprisingly, there were no takers, and he died before it sold.

    His estate slashed the price on the luxurious villa, which features 40-foot palm trees, 20-foot ceilings and a two-story library complete with a secret passageway that leads to a bedroom and bar.

    After a year of price cuts, it finally sold in February for $52 million, just $1 million more than Eddleman paid for it at auction two years prior.

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    Jack Flemming

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  • Falling mortgage rates lend a helping hand to home buyers

    Falling mortgage rates lend a helping hand to home buyers

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    Mortgage rates fell for the eighth consecutive week, giving cash-strapped home buyers some relief as the new year approaches.

    The average interest rate on the popular 30-year fixed mortgage clocked in at 6.67% for the week ended Dec. 20, down from 6.95% a week earlier, according to data released Thursday by mortgage giant Freddie Mac. As recently as late October, rates were 7.79% — the highest in more than two decades.

    The drop in borrowing cost saves new buyers hundreds of dollars each month, but experts said consumers shouldn’t expect drastic improvement in 2024.

    The interest rate on mortgages changes based on a variety of factors, including inflation expectations and Federal Reserve policy.

    Keith Gumbinger, vice president of research firm HSH.com, predicted rates will bottom out around 6.4% in 2024 as economic growth and inflation remain elevated enough to prevent further declines in borrowing costs.

    “Cheaper mortgage money doesn’t necessarily mean that cheap mortgage money is coming,” Gumbinger said. “If you really want the lowest possible interest rates, you really have to hope for the most horrific economic climate.”

    Rates have fallen since October, however, in large part because multiple economic reports have signaled inflation is slowing.

    The most recent decline comes after the Federal Reserve signaled last week it may be done raising its benchmark interest rate, which helps set a floor on all types of borrowing costs, including mortgage rates.

    For prospective homeowners, housing remains drastically more expensive than when rates were 3% and below during the early part of the pandemic. But the decline from 7.79% to 6.67%, equals $486 in monthly savings for a $800,000 home, assuming a buyer puts 20% down.

    What effect somewhat lower mortgage rates will have on the housing market depends on how buyers and sellers react.

    When mortgage rates first surged in 2022, home prices fell in response as buyers quickly pulled away and inventory swelled. But prices started rising again this year as well-heeled first time buyers returned and existing homeowners increasingly chose not to sell, unwilling to give up their rock-bottom mortgage rates on loans taken out before or during the pandemic.

    In most counties, home prices are near their all-time peaks, while in Orange County, prices are setting new records, according to data from Zillow.

    Jordan Levine, chief economist with the California Assn. of Realtors, said rates likely will end 2024 in the “low-6% range,” which should convince more existing homeowners to sell.

    But he said the increase in supply isn’t likely to be enough to offset an increase in buyers who will also be lured by lower borrowing costs. As a result, Levine said the market may actually be more competitive in 2024, with prices up around 8% by year’s end in Southern California.

    A recent forecast from Zillow predicted values would be flat to down slightly in Southern California between November 2023 and November 2024.

    Zillow senior economist Nicole Bachaud said falling rates could mean home price growth comes in stronger than that forecast, but maybe not.

    “Given the affordability crisis in Los Angeles, we might see sellers move before buyers have enough room in their budgets to respond,” she said.

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    Andrew Khouri

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  • 'Smidcap' companies are becoming a big deal. Here's a look at some of the best.

    'Smidcap' companies are becoming a big deal. Here's a look at some of the best.

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    The stocks of long-neglected small companies are finally showing signs of life as the market rally broadens. But these tiny companies still remain vastly undervalued. So, they are one of the best buys in the stock market right now.

    Small- and medium-cap companies, or smidcaps, have not been this cheap since the Great Financial Crisis 15 years ago. “Smidcaps relative to large caps look very attractive,” says says portfolio manager Aram Green, at the ClearBridge Select Fund LBFIX, which specializes in this space.  “Over the long term you will be rewarded.” 

    Green is worth listening to because he is one of the better fund managers in the smidcap arena. ClearBridge Select beats both its midcap growth category and Morningstar U.S. midcap growth index over the past five- and 10 years, says Morningstar Direct. This is no easy feat, in a mutual fund world where so many funds lag their benchmarks. 

    The timing for smidcap outperformance seems about right, since these stocks do well coming out of recessions. Technically, we have not recently had a recession. But there was an economic slowdown in the first half of the year, and the U.S. did have an earnings recession earlier this year. So that may count. 

    To get smidcap exposure, consider the funds of outperforming managers like Green, and if you want to throw in some individual stocks, Green is a great guide on how to find the best names in this space. 

    I recently caught up with him to see what we can learn about analyzing smidcaps. Below are four tactics that contribute to his fund’s outperformance, with nine company examples to consider.  

    1. Look for an entrepreneurial mindset: Green’s background gives him an edge in investing. He’s an entrepreneur who co-founded a software company called iCollege in 1997. It was bought out by BlackBoard in 2001. He knows how to understand innovative trends, identify a good idea, secure capital and quickly ramp up a business. This experience gives him a “private market mindset” that helps him pick stocks to this day. 

    Founder-run companies regularly outperform.

    Green looks for managers with an entrepreneurial mindset. You can glean this from company calls and filings, but it helps a lot to meet management — something most individual investors cannot do. But Green offers a shortcut, one which I regularly use, as well. Look for companies that are run by founders. This will give you exposure to managers with entrepreneurial spirit. 

    Here, Green cites the marketing software company HubSpot
    HUBS,
    +0.79%
    ,
    a 1.9% fund position as of the end of the third quarter. It was founded by Massachusetts Institute of Technology college buddies Brian Halligan and Dharmesh Shah. They’re on the company’s board, and Shah is chief technology officer. 

    Academic studies confirm founder-run companies regularly outperform. My guess is this is because many founders never lose the entrepreneurial spirit, no matter how easy it would be to quit and sip Mai Tai’s on a beach after making a bundle.  

    In the private market, Green cites Databricks, a data management and analytics company with an AI angle. This competitor of Snowflake
    SNOW,
    -0.92%

    is likely to go public in 2024. If you feel like an outsider because you lack access to private market investing, note that Green says he typically buys more exposure to private companies on the initial public offering (IPO), and then in the market.  “We like to spend time with them when they are private so we can pounce when they are public,” Green says.

    2. Look for organic growth: When companies make acquisitions their stocks often decline, and for good reason. Managers make mistakes in acquisitions because they overestimate “synergies.” Or they get wrapped up in ego-enhancing empire building. 

    “We favor entrepreneurial management teams that do not make a lot of acquisitions to grow, but use their resources to develop new products to keep extending the runway,” says Green. 

    Here, he cites ServiceNow
    NOW,
    +2.62%
    ,
    which has grown by “extending the runway” with new offerings developed internally. It started off supporting information technology service desks, and has expanded into operations management of servers and security, onboarding employees, data analytics, and software that powers 911 emergency call systems. Green obviously thinks there is a lot more upside to come, given that this is an overweight position, at 4.6% of the portfolio (the fund’s biggest holding).

    Green also puts the “Amazon.com of Latin America” MercadoLibre
    MELI,
    +0.17%

    in this category, because it continues to expand geographically and in areas such as logistics and payment systems. “They have really morphed into a fintech company,” Green says. He puts HubSpot and the marketing software company Klaviyo
    KVYO,
    -5.73%

    in this category, too. 

    3. Look for differentiated business models: Green likes companies with offerings that are special and different. That means they’ll take market share, and face minimal competition. They’ll also enjoy pricing power. “This leads to high margins. You don’t have someone beating you up on price,” he says. 

    Green cites the decking company Trex
    TREX,
    +0.10%
    ,
    which offers composite decking and railing made from recycled materials. This gives it an eco-friendly allure. Compared to wood, composite material lasts longer and requires less maintenance. It costs more up front but less over the long term. Says Green: “The alternative decking market has taken about 20% of the market and that can get to 50%.”

    Of course, entrepreneurs notice success, and try to imitate it. That’s a risk here. But Trex has an edge in its understanding of how to make the composite material. It has a strong brand. And it is building relationships with big-box retailers Home Depot and Lowe’s. These qualities may keep competitors at bay. 

    4. Put some ballast in your portfolio: Green likes to keep the fund’s portfolio balanced by sector, size, and business dynamic. So the portfolio includes the food distributor Performance Food Group
    PFGC,
    -1.69%
    .
    The company is posting mid-single digit sale growth, expanding market share and paying down debt. Energy drinks company Monster
    MNST,
    -0.85%

    also offers ballast. Monster’s popular product line up helps the company to take share and enjoy pricing power, Green says.

    It’s admittedly unusual to see a food companies in a portfolio loaded with high-growth tech innovators. But for Green, it’s all part of the game plan. “Rapid growth, disrupting businesses are not going to work year in year out. There are times they fall out of favor, like 2022. So, having that balance is important because it keeps you invested in the equity market.” 

    In other words, keeping some ballast means you’re less likely to get shaken out by sharp declines in high-growth and high-beta tech innovators when trouble strikes the market.

    Michael Brush is a columnist for MarketWatch. At the time of publication, he owned AMZN, TSLA and MELI. Brush has suggested AMZN, TSLA, NOW, MELI, HD and LOW in his stock newsletter, Brush Up on Stocks. Follow him on X @mbrushstocks

    More: Nvidia, Disney and Tesla are among 2023’s buzziest stocks. Can they continue to sizzle in 2024?

    Also read: Presidential election years like 2024 are usually winners for U.S. stocks

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  • Florida company targeted California homeowners with predatory scheme, state attorney general alleges

    Florida company targeted California homeowners with predatory scheme, state attorney general alleges

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    The California attorney general has sued a Florida-based real estate firm, alleging it ran a predatory scheme that limited homeowners’ ability to sell and left them vulnerable to owing thousands of dollars.

    The company, MV Realty, has been sued over similar allegations by multiple states. In September, the firm filed for bankruptcy.

    In its lawsuit announced Thursday, the California attorney general’s office alleged MV Realty targeted financially vulnerable California homeowners with deceptive marketing, promising them $300 to $5,000 as long as they gave MV Realty the “opportunity” to be their real estate agent if they sold their house.

    In reality, MV Realty’s Homeowner Benefit Agreement was far more complicated and the company trained its representatives to give misleading responses to consumer questions and to try to provide the full agreement only at the time of signing, which limited the ability of homeowners to review confusing fine print, the lawsuit alleged.

    “MV Realty is a financial predator,” Atty. Gen. Rob Bonta said in a statement. “Through its one-sided agreements, the company lined its own pockets at the expense of vulnerable homeowners in California, holding their most valuable assets hostage.”

    MV Realty did not immediately return requests for comment by email and phone.

    According to the attorney general, the MV Realty agreement mandated homeowners use the brokerage if they sell their home in the next 40 years — far longer than typical exclusive listing agreements that last several months, the lawsuit says.

    When a homeowner sells within the four decades, the lawsuit says, MV Realty gets six months to list the property, per the agreement. If the company completes the sale, the homeowner is required to pay MV Realty the greater of 3% of the sales price or 3% of the home’s value at the time the owner signed the benefit agreement, authorities said.

    If MV Realty can’t sell the home within six months, the agreement says homeowners get 60 days to try to sell the home on their own or with another brokerage and must do so at the same price and terms MV Realty offered, according to the lawsuit.

    If homeowners can sell, they owe MV Realty nothing. But if they cannot — which authorities said is likely — homeowners must use MV Realty to sell or pay a fee of 3% of the home’s value to terminate the 40-year agreement, according to the lawsuit. On an average home in L.A. County today, that would be over $25,000.

    That termination fee is typically more than 10 times the upfront fee the homeowner received from MV Realty, the lawsuit says.

    In its lawsuit, the attorney general alleged that the agreement reduces the incentive for MV Realty to provide quality service and that the company violated California law in several ways, including unlicensed activity and improper disclosures.

    According to the attorney general, since early 2022 at least 1,443 California homeowners signed the company’s Homeowner Benefit Agreement. The company “supposedly stopped” signing up California homeowners by November 2022 but still enforces existing agreements, as well as liens that limit the homeowner’s ability to refinance, the lawsuit alleges.

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    Andrew Khouri

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  • Southern California home prices fell last month. Don't expect them to plunge

    Southern California home prices fell last month. Don't expect them to plunge

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    Southern California home prices dipped from October to November, the first decline in nine months.

    The average home price in the six-county region clocked in at $829,557 in November, down 0.1% from October, according to data released by Zillow this week.

    All counties saw drops except Orange County, where values rose slightly.

    Nicole Bachaud, a senior economist with the real estate website Zillow, said the small price declines across much of Southern California can be attributed to two things: Fall is typically a slower time of the year for home sales and buyers are struggling with high prices and high mortgage rates.

    “It’s really challenging,” she said.

    According to the California Assn. of Realtors, only 11% of households in both Los Angeles County and Orange County could afford a median-priced house during the third quarter; that measure stood at 19% in Riverside County and 25% in San Bernardino County.

    When mortgage rates first surged last year, home prices fell in response as buyers pulled away and inventory swelled. But prices started rising again this year as homeowners increasingly chose not to sell, unwilling to give up their rock-bottom mortgage rates on loans taken out before or during the pandemic.

    In most counties, home prices are near their all-time peaks despite November’s small decline. In Orange County, prices are setting records.

    Prospective buyers received a sliver of good news in recent weeks. Mortgage interest rates have fallen from a high of 7.79% to the low-7% range, giving them a bit more buying power.

    But experts don’t expect a significant improvement in affordability.

    Bachaud said mortgage rates are likely to remain high, which will keep inventories tight as many existing homeowners choose to stay put. At the same time, those high rates should also keep prices from surging, since they limit how much people can afford, Bachaud said.

    Overall, Zillow expects home prices over the next year to rise 0.1% in the Inland Empire counties of Riverside and San Bernardino. Across Los Angeles and Orange counties, prices should fall 1.6%. In San Diego County, prices are expected to remain flat, while in Ventura County they should drop 2%.

    When it comes to the rental market, prices are also dropping slightly. Experts say that’s because the number of vacancies is rising as apartment supply expands and consumers worry about the economy and inflation.

    In November, the median rent for vacant units of all sizes across Los Angeles County was $1,900, down 1.9% from a year earlier, according to data from Apartment List.

    If the Federal Reserve’s actions to tame inflation push the economy into recession, home values and rents could drop further. However, there’s growing optimism that the country will avoid an economic downturn.

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    Andrew Khouri

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  • L.A. City Council to vote on digital signs for Convention Center

    L.A. City Council to vote on digital signs for Convention Center

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    The Los Angeles City Council will vote Wednesday on a plan to allow large-scale digital signs on the city-owned Convention Center in downtown L.A., a plan embraced by politicians eager for new revenue streams and opposed by foes of the blinking displays.

    Under the ordinance, bright digital signs and other types of advertisements could rise inside and outside the Convention Center. The displays would be allowed in a 68-acre site bounded by Chick Hearn Court, Figueroa Street, Venice Boulevard and the 110 Freeway.

    The vote follows the council’s approval last week of more than 70 digital billboards across L.A. as part of a revenue-sharing agreement with the Los Angeles County Metropolitan Transportation Authority.

    The new ordinance for the Convention Center would allow animated digital signage along Figueroa Street and Chick Hearn Court, as well as digital signage with non-moving images along the back of the Convention Center facing the 110 Freeway, according to the city’s Planning Department.

    Money raised by the digital signs on the Convention Center will help pay for renovations to the center, city officials said.

    Doane Liu, the city’s chief tourism officer, told The Times that one estimate predicted $14.8 million in annual revenue from the signage. He didn’t provide details about when the estimate was completed or who performed it.

    Councilmember Curren Price, whose district includes the Convention Center and L.A. Live, expressed support for the signs in a Dec. 5 letter to the city’s Planning and Land Use Commission.

    “The new sign district will allow us to receive enough revenue to complete the future renovations and expansion of the Los Angeles Convention Center prior to the 2028 Olympics,” he wrote.

    Price’s letter references a separate city initiative to potentially overhaul the Convention Center in time for the 2028 Games. Costs remain an issue, however, and city leaders haven’t made a decision on whether to go forward with a renovation.

    Either way, table tennis and other sports may be played at the Convention Center during the 2028 Olympics, according to city officials.

    More broadly, city leaders want to make L.A. competitive with other major cities that draw big conventions and bring in more tourism dollars.

    Angelina Valencia, a Price representative, said the accurate value of the digital signs at the Convention Center hasn’t been assessed yet.

    Barbara Broide, co-president of the Coalition for a Beautiful Los Angeles, called the proposed digital signs at the Convention Center a “terrible visual assault for Angelenos.”

    “It is a dangerous distraction for those who need to be watching the road,” Broide said.

    Historical preservation expert Kim Cooper also expressed concern over driver safety and light pollution for surrounding neighborhoods. “There’s a potential impact on mental health and sleep,” Cooper said.

    Liu, the city’s chief tourism officer, said that convention customers have been clamoring for the signs. He said that digital displays on the outside of the Convention Center could be used in a variety of ways, including to advertise medical scrubs, for instance, at a nursing convention.

    He also pointed to the large-scale blinking displays that some downtown developers have sought for their residential buildings. “It’s only right” that the Convention Center should also have digital billboards, he said.

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    Dakota Smith

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  • Video: Opinion | Your Rewards Card Is Actually Bad for You, and for Everyone Else

    Video: Opinion | Your Rewards Card Is Actually Bad for You, and for Everyone Else

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    This is a story about you and your favorite credit card, the one that earns you points. You use your card for everything. You pay off your balance every month. And you watch with glee as your rewards grow and grow and grow. And when it’s time to cash in, you announce that you’re going to get a family gift. And each member will get one vote. And then your daughter argues that the family needs another iPad. And your son has fallen in love with the ugliest garden gnome that you’ve ever seen. And so to break up the skirmish, you decide that you’ll be getting the frying pan. Because what brings the family together more than food? Marty is the answer. But let’s keep him out of this. And when they complain and say, “But that’s not what I wanted,” you look them in the eye and say, “This was never about you.” “It’s about us, all of us.” And then two weeks later your frying pan arrives. And you can’t help but smile because you kind of did get this for yourself, though you’ll never admit it. And you’re looking at the frying pan. And it’s staring at you and you at it and it at you and you at it. And you just have this split second where you think to yourself: Who actually paid for this? Who pays for all of this? Well, if you love your rewards card, then you’re probably not going to like the answer. Because you try to be a good person, you shop locally. And each week you buy, let’s say, $100 in groceries from MJ. When you swipe your card, that $100 doesn’t go straight to MJ. Instead, store owners are charged a series of fees, the largest of which is called the swipe fee. It’s set by the card network, usually Visa or Mastercard. And your bank uses it to pay for your rewards. The swipe fee is usually between 1.5 percent and 3.5 percent of your total. The more premium your credit card, the more that MJ is charged. Now, that might not sound like much. But it can add up. For small businesses like MJ’s, swipe fees can be one of their biggest expenses. And small stores like hers get charged higher rates than big-box competitors. In order to cope, store owners like MJ raised their prices. That means that all of us are paying more. But only those who have special cards are getting rewards. And here’s the catch: The wealthiest Americans tend to have the best cards that give them the most rewards, while poorer Americans are more likely to pay in cash or debit with no rewards or benefits. So what we really have is a system that forces everyone to pay higher prices in order to subsidize rewards that primarily go to the wealthy. So this rewards card, it’s really a screw-over-poor- people card. Every time you use it, you’re contributing to inequality, helping to drive up prices and further squeeze the most cash-strapped Americans, all so that you can get that free frying pan. You’re probably not benefiting from rewards as much as you thought. In 2020, the Federal Reserve found that the average American at every income level loses more to swipe fee price hikes than they earn in rewards. And of course, the poorest Americans are still getting handed the worst deal. On average, they pay five times more in price mark-ups than they’ll ever receive in rewards. Why are we stuck in this system? Why are swipe fees in the U.S. nine times higher than they are in Europe? Why do we have to pay so much just to pay? Well, it’s largely thanks to two companies, Visa and Mastercard. This system is their core business. It’s what they do for a living. And, sure, they’re providing a service and deserve to earn a profit. But these two companies control over 80 percent of the credit card market. With scant competition, Visa and Mastercard have faced little pressure to rein in swipe fees. The truth is for the vast majority of Americans, the best deal might not come in the form of a new piece of plastic but instead a new piece of legislation. That’s because Congress has the power to regulate swipe fees. In fact, in 2010, they did just that for debit cards. Remember the swipe fee on that $100 grocery purchase? If you paid with a debit card, it would have only cost MJ 26 cents. Dick Durbin, the senator who helped crack down on swipe fees for debit cards, has authored a bipartisan bill that would use competition to drive down credit card swipe fees. But the banks and credit card companies are, of course, pushing back. Right now, there are two things that you can do. First, call your senator and encourage them to support this bill. You can go to this website to find their number. Second, if you’re shopping at a small business that you want to support, remember that how you pay can make a difference. Using your debit card can save small businesses a lot in swipe fees. But the best solution might be elsewhere in your wallet. Increasingly, small businesses are offering discounts for cash payers. Avoiding this predatory system can be a win for both of you. And if those rewards are just too good to say goodbye to, well, then at least don’t go around telling people that you’ve never taken a handout, because you have. And the working class is paying for it. [MUSIC PLAYING]

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    James Robinson and Emily Holzknecht

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  • Southern California home values near record despite the high cost of borrowing

    Southern California home values near record despite the high cost of borrowing

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    Southern California home prices are nearing a record high at a time of sky-high mortgage rates, a double blow that’s hammering housing affordability across the region.

    In October, the average home price for the six-county region climbed 0.12% to $831,080, according to data from Zillow. It was the eighth consecutive monthly increase, leaving prices just 1% below the all-time high reached in 2022.

    “I don’t understand how people are affording these insane mortgages,” said Nicholas Uribe, a 31-year-old property manager who is trying — so far unsuccessfully — to buy a single-family home in the San Fernando Valley.

    Although prices are slightly lower than during the peak, a home is drastically more unaffordable. In October, the monthly payment on the typical L.A. County home was $4,830, according to Zillow. In June 2022, when prices peaked and rates were lower, the typical payment was nearly $900 less.

    Some experts say they don’t expect prices or mortgage rates to drop considerably in the near future — a forecast that, if realized, could dash the hopes of people like Uribe.

    In theory, he should be better off than he is. In 2019, he paid $329,000 for a Sylmar townhome that his agent now estimates is worth about $500,000.

    He’s also making more money. But despite his higher paycheck and home equity, he feels stuck.

    With interest rates roughly double what they were in 2019, Uribe said he could barely afford to buy a comparable townhome at today’s prices, let alone the single-family home he’d like to trade up to.

    With today’s rates, the top of his budget is about $500,000, which he said “gets you nothing in the San Fernando Valley.”

    On a recent afternoon, only three San Fernando Valley houses were for sale on Redfin priced at $500,000 or less. One was accepting only cash. All three were one- or two-bedroom abodes that were smaller than Uribe’s townhome and appeared run-down.

    The trend of declining affordability is playing out across the country. How the nation and Southern California arrived at this moment, experts say, is a tale of under-building, pandemic trends and federal monetary policy.

    During the height of the pandemic, people rushed to purchase a home, motivated by stay-at-home policies and mortgage rates driven to record lows by the Federal Reserve’s easy money policies. That demand surge collided with a shortage of homes for sale and caused prices to skyrocket.

    But as inflation soared, the Federal Reserve reversed course, tightening policy in a switch that helped send mortgage rates sharply upward. From November 2021 to November 2022, rates climbed from below 3% to 7%.

    Initially, prices in Southern California fell as shocked buyers backed away and inventory swelled. Then the flow of homes hitting the market ground to a near-halt.

    Increasingly, homeowners chose not to sell and give up their rock-bottom mortgages. Some like Uribe couldn’t afford to move. Others could but thought it a bad deal to pay so much in interest.

    When rates dropped into the 6% range and then stayed there for much of this year, it wasn’t enough to entice back many sellers. It did bring back a fair number of well-heeled buyers — especially first-timers without a mortgage — who decided they had put off their home purchase long enough.

    According to a Zillow survey done earlier this year, half of recent home purchasers were first-time buyers, which the real estate firm said is probably the highest share since around 2010 when a first-time buyer tax credit juiced demand.

    Demand for housing remains weaker than during the pandemic, but the combination of a little more demand and a lot less supply has been enough to push prices up.

    In Southern California, home prices bottomed in February. The median price has risen 8% since then to come in just under the all-time high of $839,674.

    In recent months, mortgage rates have surged past 7%, further crimping the budgets of potential buyers.

    According to the California Assn. of Realtors, only 11% of households in Los Angeles and Orange counties could afford the median-priced house in the third quarter, the lowest level since the mid-2000s housing bubble.

    Looked at another way, a median-income household in those two counties would need to fork over 76.5% of its income to afford the average-priced house in September, according to Intercontinental Exchange, a financial services firm.

    The September payment-to-income ratio is the highest level in a data set that starts in 1992 and contrasts with a long-term average of 35.6%.

    Andy Walden, vice president of enterprise research with Intercontinental Exchange, called today’s current levels of affordability unsustainable, but said that doesn’t mean prices will fall.

    “Sometimes a correction means home prices grow at a lower rate than incomes,” he said.

    That process could be underway. While prices rose in October from September, the increase was the smallest since values resumed their climb earlier this year.

    Nicole Bachaud, a senior economist with Zillow, said part of the current downshift is seasonal.

    Overall, Zillow predicts home prices across Los Angeles and Orange counties will dip 1.5% over the next year. In the Inland Empire counties of Riverside and San Bernardino, prices should rise 0.2%.

    Bachaud said home prices should be more or less flat because the lack of affordability will serve as a ceiling, while tight inventory will serve as a floor.

    A substantial increase in inventory could ease the experience for buyers, and there have been minor signs of improvement.

    In Los Angeles County, Redfin data show the number of new homes hitting the market each week is now 2% below year-ago levels, compared with 30% declines seen earlier this year.

    Experts said more homeowners may finally be done waiting and are choosing to sell. But buyers shouldn’t expect a surge of additional options any time soon.

    More than 60% of all U.S. homes with a first-lien mortgage have rates below 4%, according to Intercontinental Exchange data, and the gap between the rate homeowners have and the rate they’d get in today’s market is the largest since 1980.

    That gap — and the disincentive to sell that it brings — should shrink over time as more people decide they must move and rates retreat a bit, Walden said.

    “But it’s going to take years for that to take place,” he said.

    In the meantime, people wait.

    Shawna Jamison is one of them. She hoped to be out of her 565-square-foot San Diego condo by now, but a combination of personal and market factors have kept her there.

    The 37-year-old bought her San Diego unit nearly a decade ago, then a few years later moved to Orange County for a job promotion and rented the one-bedroom out.

    The plan was to transfer back to the San Diego office in several years and buy a bigger place in the city she loved. But the pandemic delayed office transfers and permanent work from home policies weren’t established, giving the software analyst pause about moving back south.

    It wasn’t until late 2022 that she got the OK to transfer to San Diego. She returned to her condo, but by then mortgage rates had surged.

    She’s searched for a larger home ever since, but can’t find anything within her budget.

    “I was waiting for my personal situation to align,” she said. “But as soon as my personal situation aligned, the interest rate situation is a disaster.”

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    Andrew Khouri

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  • Global Risk Of Housing Bubbles Deflates Sharply [Infographic]

    Global Risk Of Housing Bubbles Deflates Sharply [Infographic]

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    The global risk of housing bubbles has decreased sharply in 2023. A report released Wednesday by Swiss bank UBS concludes that out of 25 cities surveyed, only two were at risk of a housing bubble this year, down from nine each in the previous two reports. The data shows that even places known for their chronically high prices of housing exited bubble territory and were now merely classified as overpriced, including Tel Aviv, Hong Kong, Frankfurt and Toronto.

    UBS identified rising interest rates causing the end of cheap financing in the real estate sector for the change. Inflation-adjusted international home prices experienced the sharpest decrease since the 2008 global financial crisis as a result of these changes. The report states that especially the most unaffordable markets couldn’t take the added pressure from increased interest and slumped.

    Two cities most notorious for unaffordable home prices retained their bubble risk—Zurich and Tokyo. The leader of the list, Zurich, saw a slight decrease in its score, while Tokyo saw a slight increase. The Swiss market in general has not fully adapted to the changed market conditions yet, according to UBS. This also becomes visible in the virtually unchanged score of Geneva, which caused it to rise in rank opposite other cities where bubble risk decreased substantially. For Tokyo, the report cites the market’s defensive qualities which remain attractive to foreign investors.

    One way bubble risk can end as a result of interest rates giving prices another push is overwhelmed buyers pivoting back to the rental market, dampening demand and house prices in the process. This is especially likely in markets where renting is somewhat cheaper than buying. Another way a correction can take place is when cities have a lot of buy-to-let activity, which lost profitability in the course of rising interest rates. This can free up capacity in the housing market and also lower prices.

    Decline all around

    In some cities, the decline of housing bubble risk started earlier than 2023. Hong Kong, long listed among the top cities for housing bubble risk, decline to rank 5 in 2022 and rank 6 this year—exiting bubble territory faster than other cities. This is due to a compounded crisis of downward pressures not restricted to high interest, in this case demand gaps due to isolating Covid-19 restrictions, economic turmoil in Mainland China as well as an aging society.

    Miami remained the highest-ranked U.S. city in 2023—at a score of 1.38 rated just 0.13 index points below bubble risk territory. The city also saw only very slight changes from 2022—unlike other cities which are now found much lower down the ranking. Housing prices in Miami have continued an increase that is above the U.S. average. The relative strength of the city’s housing market can be explained by its comparably low income-to-house-price levels and population influx to the U.S. sun belt. New York and San Francisco are now found in the fair-valued category after experiencing Covid-19 and quality-of-life related deflators on top of pressure from interest. Los Angeles is the only housing market in the U.S. other than Miami that UBS views as overvalued, but it has also become more affordable since last year.

    Charted by Statista

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    Katharina Buchholz, Contributor

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