patrick.net

dodgerfanjohn says

Of note, where I live in DTLA there is currently construction and new units opening. And those new places had NO problem renting their places at current market rents(1800-1900/mo for similiar places as those below). Whats curious though is that new people did not fill these units. Rather it was people escaping ridiculous rent increases at other buildings(as much as $500/mo). Whats even more curious is those places that people fled from are now advertising units at the same rates they were depressed at when I moved to DTLA 2 years ago. Very very odd how that works.......

IMO, people buying/bought in DTLA weren't looking for rental cashflow properties. They were speculating that DTLA revitalization, LA Live, and the possibility of Farmer's Field being built would increase property prices in DTLA.

Horrible idea for investing if you ask me, but great for renters.

The only buyers left are first-timer buyers, or investors, and they are both competing for the last remaining stock of sub-$500,000 homes on the market in SoCal. All the high end stuff just sits and sits.

A small treasure trove of more 'Ghost Inventory' articles.

http://mhanson.com/archives/991

http://www.lvrj.com/business/concern-over-ghost-inventory-called-threat-to-housing-recovery-177022641.html

"We didn't invite Bank of America, Wells Fargo and Chase because we keep hearing the same rhetoric that they're sitting on zero ghost inventory," Shelton said Thursday. "Banks realize they need to manage the release back into the market for stability in the short term."