Change is constant and it appears as though change will continue to move at an exponential rate henceforth. And yet, Real Estate is still the best hedge against inflation. The stock market, crypto currency, regional banks, commodity prices, interest rates, taxes, insurance rates+++ are sure to fluctuate. At Loveland Carr Group we strive to stay informed in order to help you be prepared and make wise decisions for your unique situation. May we continue to stay grounded by enjoying each and every moment we share with family and friends at home.
The psychological benefits of a beautiful home are immeasurable.
The luxury residential real market in Los Angeles keeps moving…..
The largest sale in August was in Beverly Hills Post Office at 55 Beverly Park Way for $32,400,000. In addition, there were 5 other sales over $20MM in Beverly Hills, Malibu, Pacific Palisades and Beverly Hills PO. Note: the new Measure ULA transfer taxes do not impact Beverly Hills or Malibu.
Year to date, there have been 475 closed sales over $5 Million through the end of August versus 765 closed sales at this time last year, down -38%. Neary a third of these were $10 Million+ which were also down approximately -39%. Interestingly 55 sold before Measure ULA passed which impacted City of LA sellers. Since April 1 when the Measure took effect, many were in exempt Beverly Hills and Malibu. Volume might be down, but prices are still higher than pre-pandemic 2019 levels due to lack of supply or inventory. Roughly 2/3 of homeowners either own their homes outright or enjoy mortgage interest rates under 4%. Plus, many Boomers own second and third homes which restricts supply for other buyers.
The largest sale this year was $190 Million and created by architect Tadao Ando just steps to the ocean in Malibu. Jay-Lo and Ben Affleck are enjoying this concrete home at 27712/16 Pacific Coast Highway. Tadao also designed a home for Kanye West.
Of the 40 properties sold over $20+ Million this year, the neighborhood breakdown is interesting.
- 9 in BHPO and Malibu
- 6 in Beverly Hills
- 4 in Pacific Palisades
- 3 in Sunset Strip, Bel Air and Brentwood
- 1 each in Los Feliz, Holmby Hills and Westwood
In Hancock Park, there were 3 sales in August, the highest of which was $7.8 Million at 165 South Hudson followed by Loveland Carr Group’s listing at 330 S Windsor which sold at $5.9 Million.
Year to date there have been 19 sales over $5 Million in Hancock Park versus 24 at the same time a year ago, down -21%. Not nearly as dramatic as West Los Angeles. Then again our highest sale ever was $21 Million. There were only 6 sales over $5 Million since ULA took effect April 1, 3 of which were in August. Twice as many sold during the same period in 2022, -50%.
Since 3 of the 6 sales post Measure ULA were in August, perhaps the market is warming up to the idea of paying the tax since most have built up equity. Other potential Sellers are choosing to wait on the sidelines while lawyers and politicians seek to overturn the draconian measure in Federal & State courts and/or on the 2024 ballot. Inventory is likely to remain low.
Please reach out to Anne Loveland at 323-864-3004 if we can be of assistance to you or someone you know who would like to discuss their situation.