Los Angeles has always been well-regarded as a location for luxury housing, and over the years the demand for luxury homes in the area has increased. Before the housing bubble burst of the early 2000s, homes in the LA region could reach staggering highs. After the economic downturn, things slowed down but gradually began a recovery. Here at Suzanne Dranow, we’re excited by new data that shows home prices in LA’s upscale communities have reached impressive new heights.
In fact, the data shows that homes in some of the most high-end luxury neighborhoods have now officially passed beyond the levels they were at before the housing bubble burst. Homes in regions including Santa Monica, Beverly Hills, and Bel Air are all going for prices that are well above their previous highs. Here’s a look at some of the key points from the data.
- The median price of single family dwellings as well as single family condos was $885,000 during the fourth quarter of 2014.
- In the second quarter of 2014 the homes hit their record high of $895,000
- The previous record was $862,000, and was hit all the way back in 2007’s third quarter.
- That fourth quarter figure was an increase of 7.3% from the previous year.
- It was also a 0.7% rise from the previous quarter.
- Beverly Hills homes sat at around $3.55 million as a median price during the fourth quarter.
- Malibu homes had a median price of around $2.47 million.
- Bel Air had median prices of about $1.75 million.
- Average price per square foot was $740, an increase of 12% from 2013.
The interesting thing is that the national trend of luxury homes has been the same – increasing prices throughout the nation. But in LA, that figure is truly impressive and helps highlight the simple fact that there is now a growing demand for luxury homes and properties that are purchased by those who aren’t completely dependent on financing.
The 2015 market is likely to be robust, and the market will continue the recovery it has been on throughout the last year. As a result, there’s a good chance that prices might hit even higher record levels over the coming months. It’s an exciting time to be looking into LA luxury real estate, and we’re glad that we have the opportunity to be a part of it as well.