Sotheby’s International Realty’s Greater Los Angeles Market Report was published in January 2016. The report is a three-month analysis of the market for homes in Southern California. The study breaks down home sales into categories of less than $1 million, $1-3 million, and more than $3 million.
Beverly Hills remained the top Southern California luxury market, with 26 homes over $3 million sold in a three-month period. This represented an 18 percent year-over-year increase for the Beverly Hills.
Despite an increase in the number of homes that are being moved, it appears that prices are on the decline. In Beverly Hills, the average list price of homes over $3 million actually decreased by 14 percent, and the selling price of those homes declined by 10 percent.
The Pacific Palisades, however, appears to be an increasingly popular market for luxury home buyers. The report showed a 71 percent year-over-year increase in the number of homes over $3 million sold in the Pacific Palisades, from 14 homes sold last year to 24 homes sold this year.
This remarkable increase in the number of homes sold were despite the fact that both list prices and selling prices remained unchanged.
Santa Monica was also a big mover this year with a 64 percent increase in sales. List and selling prices in Santa Monica actually increased 13 percent and 12 percent, respectively, along with the number of homes sold, indicating that Santa Monica may actually be the most popular luxury home market right now.
Executive vice president and chief operating officer of Sotheby’s Western Region, Frank Symons, indicated that the entire L.A. region is posting strong gains in the luxury housing market, nothing strong buyer demand in new developments such as Santa Monica Place and Palisades Village.
The neighborhoods with the greatest price gains were Malibu Beach, Malibu, and Bel Air – Holmby Hills. Malibu Beach homes sold for an average of $10,963,500, representing a 56 percent gain. Malibu homes sold for $3,871,238 on average for a 47 percent gain, and Bel Air – Holmby Hills homes sold for $6,184,713 on average for a 33 percent gain.