Overall, 2007 was a terrible year for home sales in Los Angeles. Yet homes at the highest end of the spectrum in Los Angeles did not see the kind of a freefall seen everywhere else.
As reported in The Los Angeles Times, Dec. 30, 2007, “sales in the multimillion-dollar price range were strong (in 2007) ... A look at the closings shows 63 home sales over $10 million for the area in 2007 compared to 55 in 2006. There were 12 over $20 million in 2007 in contrast with 10 over $20 million in 2006.”
And a closer look at the sub-market that I work in most frequently — Bel Air, Beverly Hills, Brentwood and Malibu — reveals that more homes sold for $10 million or more in 2007 than in any previous year, according to statistics from the Los Angeles Board of Realtors.
This is exactly why despite the slow overall real estate market, I'm currently putting together a development of 8-figure homes.
1 comments:
thats part of the same reason why LA prices have ballooned so much. theres no shortage of multi-millionaires which dont mind inflating the price of anything. did you notice Beverly Hills is also the only place in the planet where you could buy $40 bottled water. the mega rich will always flock to LA and strangely the rich will get richer. now what about average joe schmoe angeleno, the median income of LA only wouldnt even really qualify you to buy a condo in this market in the low income section of LA. i guess the bottom line to everything im trying to say which didnt come out clearly on top is that as long as the banks give loans and qualify someone with a $2000 monthly income to buy a house that has a 2700 mortgage the prices will stay high, but when the day comes that someone with a $9000 monthly salary with low rotating debt and 25% down payment wont be given a loan, that will probably cause the opposite of what happened in the last 5 years, and the median house price in LA might come down to close to the level it was at in 1998, or maybe even lower, im talking 100k to 150k, it isnt to ridiculous to think that might happen, after all in 1998 if you told someone a house cost 190k that was considered pretty expensive, prohibitibly so. i know because i passed up a chance back then,, (do i feel like an idiot now). good blog though, its always good to have dialogue
former glendale realtor
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