Beverly Grove, 90048

 … [more]

Beverly Grove, 90048 Beverly Grove, 90048

Beverlywood, 90035

   … [more]

Beverlywood, 90035   Beverlywood, 90035

Hancock Park, 90036

 … [more]

Hancock Park, 90036 Hancock Park, 90036

Beverly Hills, 90211

 … [more]

Beverly Hills, 90211 Beverly Hills, 90211

Luxury Sales Cool as the Hot Summer Ends

luxury home salesSelling any home is a challenge. That’s been especially true in 2014, a year in which the number or existing-home sales has fallen. And if you’re selling a high-end luxury home, one with a price tag higher than $1 million? Then selling your home is even more of a challenge. Luxury home sales peaked in late June but by the first of September the market crossed over into a buyers’ market for the first time since early spring, though not strongly so. Median luxury prices also have been falling since the end of June, according to weekly market reports from the Institute for Luxury Home Marketing.

Last week ILHM’s Market Action Index, which is calculated from active listing data from Altos Research, fell to 29.  The Market Action Index measures available supply relative to the current level of demand. Index value above 30 indicates conditions favor the seller. The index reached a season-high of 31 in late June. Days on market also rose to 153 last week, the highest it has been since the end of March.

The total luxury inventory of 23,802 have stayed near 24,000 and have yet to decline significantly with the end of the sales season; strong inventories were a factor in the switch from a sellers’ to a buyers’ market. The ILHM Luxury Composite Price this week is $1,312,295, or an average asking price of $359 per square foot.  With the end of the summer, more and more sellers are eager to sell.  Price decreases rose to 38 percent of all listings and only 4 percent of current listings have raised their prices.  Some 11 percent of currently luxury listings have been relisted.

The declining market activity is widespread.  In 18 of the report’s 31 markets, activity was down in the first week of September.  Only Chicago, New York, San Diego and Philadelphia reported market increases. Homes in the ILHM sample each week are on the market for at least $500,000 in the top 10 zip codes for 31 major metro markets around the country.

Luxury Real Estate Defined

luxury real estate

While the term “luxury” can be subjective, a luxury home or luxury real estate is generally defined as a property priced within the top 5-10% of a given real estate market. In most markets that is a home of value of more then one million dollars in the Los Angeles market it’s defined by an entry-level price of about $2 million.

However, there’s more to luxury than a price tag, a home that may have

Continue reading…

Has the Real Estate Market Peaked

businessman with mini house and US dollars

One of the oddest things about this current housing market is the dwindling amount of supply. For areas like Los Angeles and nationwide, total housing supply has been on a downward trajectory since 2010. While an environment of rising home prices, less supply, and hungry buyers would lead you to believe that more home building would be occurring, not much of that has actually happened.Though the housing market is recovering nicely, it is not doing

Continue reading…

Luxury Loans Surge To Record Levels

Home buying

Banks are handing out mortgages of as much as $10 million to the wealthy in record numbers while first-time home buyers struggle to get loans. Wealthy borrowers are having an easier time getting a mortgage, with banks issuing a record number of mortgages in excess of $1 million while continuing to keep lending tight for first-time home buyers, Bloomberg News reports.

These high-net-worth borrowers do act differently than first-time buyers, who borrow because they have

Continue reading…

Los Angeles Real Estate Surging

home_sales_up

There is very little doubt that the real estate market is on much firmer ground that it was five years ago. Along the California coast, it’s not merely challenging to find reasonably priced real estate – it’s nearly impossible. Home values are rapidly rising and a confluence of factors will likely continue to drive the market even higher. Pent-up demand, job growth and still-slow mortgage rates continue to put pressure on home prices. The median

Continue reading…