While there’s no question that the years following the housing market collapse of the early 2000s were difficult for those in the real estate world, most will agree that we’ve been on a steady recovery for some time now. And most recently, upscale neighborhoods in California have really taken off. In fact, some of the more high-end Los Angeles communities have actually reached price points that exceed what they were at before the economic downturn.
This news comes along with info that the rest of the nation’s upscale housing markets are rebounding as well. In the marketplaces that feature buyers who aren’t as dependent on finding financing for a home purchase, things are going beyond just looking up. Here at Suzanne Dranow, we couldn’t be more excited by this news since it solidifies what we’ve already known – the LA upscale real estate markets are vibrant, thriving, and viable for buyers as well as for seller.
For example, consider the following stats.
- The median price of single family homes and condos in the last quarter of 2014 reached about $885,000.
- That’s an increase of 7.3% from the year prior
- It’s also just under the all-time record high for LA – which occurred in the second quarter of 2014 and was $895,000.
- The previous record happened seven years earlier in 2007, and was $862,000.
- Beverly Hills homes had an average of about $3.55 million for the last quarter of 2014, still a significant number but down slightly.
- Average price per square foot figures were up 12% from 2013, at about $740 per square foot.
So what does that mean, exactly? Essentially, it means that if you’re in the market for a new home you should act quickly. Prices are on the rise, which means that buying now is a smart move. For those with property to sell, there’s never been a better time to list since the market is filling up with excellent opportunities from motivated buyers who are ready to call the LA area their new home.
All in all, what it means is that consumer confidence will likely climb over the next several years as the real estate market continues its recovery. While certain segments of the national housing market are struggling, the high end luxury homes that Los Angeles neighborhoods are famous for are selling fast, and selling for high prices. That’s good news for everyone involved.