Spring has sprung and the sun is shining upon Hancock Park. Over the last three months the market (and real estate professionals) showed resilience despite constant rainfall, volatility in the banking sector, another interest rate hike, major tax policy changes and global economic uncertainty.
Local prices hit new highs for some of the most sought-after properties. Windsor Square recorded two record breaking sales: 226 S Windsor at $10.5MM marked the highest sale North of 3rd Street and 425 S Plymouth was the highest sale South of 3rd at $16MM. Premiere condominium Country Club Manor at 316 N Rossmore recorded its peak price of $2.4MM for the penthouse.
Two noteworthy sales dramatically illustrated the perils of overpricing: 315 S Hudson started at $25MM and after one year sold at $13.55MM. 357 Lorraine started at $15MM and sold for $7.75MM after just over a year on the market. All serve as a good reminder that beautiful style always sells and that a thoughtful sales strategy is paramount.
As expected, many Sellers sold in anticipation of Measure ULA tax hikes taking effect April 1st. There were 13 sales in Q1 over $5MM, 4 of which were over $10MM! The Fed raised rates by 25 basis points following 6 consecutive larger increases. While average 30-year fixed mortgage rates bounced between 6% and 7%, by March rates gradually cooled off and multiple offers were back across many price points.
It remains a favorable time to enter the market for those with a 7-10+ time horizon as inflation is likely to continue. Sellers note: prices are well above pre-pandemic levels if you are considering unleashing your equity and putting it to good use elsewhere. Looking ahead our forecast remains positive as inventory is low relative to Buyer demand. We expect continued macro-economic volatility. Markets and rates will fluctuate and yet it remains a great time to buy or sell.
Contact Loveland Carr for sage advice on how to put our decades of experience and track record of results to work for your specific circumstance.