2010 Mid Year LA Luxury Market Report Sales Volume is Up


July 31, 2010

The luxury Westside—Triangle communities (over $2 Million) of Beverly Hills, Beverly Hills-Post Office, Bel Air and Hancock Park continued to show positive sales growth for the Mid-Year Report from January 1, 2010 to June 30, 2010.

BEL AIR Sales Volume Up 163%! Transactions Up 64% BEVERLY HILLS Sales Volume Up 45%! Transactions Up 26% HANCOCK PARK Sales Volume Up 37%! Transactions Up 130% BHPO Sales Volume Up 12%! Transactions Up 33%

The luxury Westside—Triangle communities (over $2 Million) of Beverly Hills, Beverly Hills-Post Office, Bel Air and Hancock Park continued to show positive sales growth for the Mid-Year Report from January 1, 2010 to June 30, 2010. Bel Air sales volume was up a whopping 163% and Beverly Hills City was up 45% when compared with the same time period a year ago. While Hancock Park (up 37%) and BHPO (up 12%) sales volume was also higher, the number of sales transactions was up 130% in Hancock Park and 33% for BHPO.

A significant factor for the increase in sales activity is that sellers have become much more realistic about value. It’s important to note that the average sold price was usually within 5%-7% of the final list price. This means it is even more important than ever to market your property at the correct price point. If it’s overpriced, even by 10%, it will most likely just sit there and may even increase the chances of it selling below market value. I have included a repeat of my Perfect Pricing article in this market report. The increased demand, in turn, has demonstrated greater perceived value resulting in stronger buyer confidence.
Foreign buyers continue to make a strong impact in our luxury market. While not officially public information yet, the Wall Street Journal has reported that the recent Bel Air sale in the $50 Million range, which would be the highest residential sale in the US this year, was purchased by an Indonesian buyer. A recent survey by the National Association of Realtors reports that foreigners made up for 7% of residential transactions and they were much more likely to be an All Cash purchase. Of course this is a national survey, it’s important to note that international buyers tend to select top destinations such as California, Florida, Texas & New York, so our numbers may be considerably higher.
While the summer market sometimes slows down since many of us are traveling, we anticipate a continuation of the same trends for the upcoming third quarter. Interest rates have remained historically low and availability of financing seems to be opening up. The upper-end properties should continue their strong demand. While there is no ‘business as usual’, at least there are signs that we are returning to a market that we can understand.

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