Los Angeles luxury home prices continued to soar in the second quarter of 2015. These prices are surpassing the levels reached before the last housing market burst.
In the second quarter of 2015 Los Angeles saw an 8.6 percent increase in the number of luxury home sales over the second quarter of last year. All price indicators for single-family homes set records. Marketing time fell as sales continued to rise and the luxury single-family home median sales price set record highs.
Many of L.A.’s most popular neighborhoods are seeing at-or-near record prices, and some high-end area prices are jumping into the stratosphere. Santa Monica, Beverly Hills, and Pacific Palisades also saw increases in the number of sales. For the luxury market the median price of a single-family home climbed to just over $5.9 Million.
The median price for the second quarter of 2015 shows an increase of 13.7 percent over the median price from the same quarter in 2014. People believe this increase can be attributed to an overall strong economic outlook.
Data shows inventory is moving along, and sales are rising as the economy shows improvement. During the second
quarter of 2015, there were 164 sales of single family luxury properties.
Demand for luxury properties is getting stronger. This is reflected by an increase in sales in the second quarter of 2015 of 39 percent compared to the first quarter of 2015.
With this demand comes some extra challenges for those selling these luxury homes. Selling tactics must be taken to another level for this more sophisticated and savvy group of potential buyers.
Some agents are thinking outside the box. Agents are holding evening open houses to showcase sparkling city light view properties or arranging helicopter rides to help buyers take in aerial views of sprawling estate properties.
Foreign luxury buyers are becoming increasingly more likely to buy a property solely based on what they read online.
With increasing instability in the Middle East and other areas, more foreigners are looking to the U.S. as a “safe haven” for their money as well as a desirable place to vacation or relocate in the event economic or political upheaval necessitates such a move.
Vacation home sales represented 21 percent of all home purchases in the U.S. last year, a record bolstered by stock-market gains. Vacation sales from 2014 are estimated at 1.13 million homes. Sales are up a whopping 57 percent from 2013.
The reason for this is baby-boomers buying homes for their retirement, often with help from stock investment gains in recent years.
Los Angeles luxury home sales are typically surpassing past years’ records and do not seem to be slowing down.
Contact Bess at 310.291.4111 or Bess.CenturyCityNews@yahoo.com.
For a free courtesy consultation, or information regarding mortgage brokers, contact Bess Hochman, a top Westside Real Estate Broker for over 20 years. Bess is also distinguished by holding a law degree. This article expresses the opinion of the author. You are advised to consult attorneys & others experts specializing in the issues referenced in this article.
“Bess is a master negotiator!” says Michael Donaldson, attorney & author of “Negotiating For Dummies.”
