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2011 Luxury Market Report For Beverly Hills, Los Angeles and Hancock Park

Record Sales in the LA’s high end rea estate sector.

MESSAGE FROM GREG MOESSER . . .

The Los Angeles “Westside—Metropolitan” real estate market continued to be a study of contrasting micro-markets. At one end, the ultra-high end market, after having been somewhat idle for the last two years, began to pick up noticeable activity (albeit at significantly reduced prices). Beverly Hills, Bel Air, Holmby Hills & Hancock Park—Windsor Square faired better than many areas, with devaluation averaging 10% to 20%.

Properties above $10 million did better in 2010 than at any time in the last two years. Beverly Hills and Bel Air—Holmby Hills had over 30 sales. At mid-year, The Wall Street Journal reported that the Bel Air mansion known as Le Belvedere, listed at $85 million and reported to have sold for $50 million to an international buyer, was the most expensive USA home sale in 2010. Two of the highest sales in Beverly Hills occurred in December, and should be a good indicator of continued activity for 2011. While both sales closed at $23 million and $23.5 million, these prices were still considerably less than their original asking prices.
 
The lower end, or entry level luxury market, those homes in the $1 million to $1.5 million range, buyers seemed much more cautious, especially in the second half of 2010. This market is still much more affected with financing regulations and the continued volatile activity of short sales and foreclosures. Another factor is the large inventory of condominiums that are currently on the market, although there have been some very recent signs that 2011 may show some upward activity.
 
The mid luxury market was somewhere in between the high end and entry level markets. For instance, Beverly Hills had 50 sales in the $2 million to $3 million range, dropping to only 15 sales in the $4 million to $6 million range, and then as we approach the high end, a jump of 34 sales in the $7 million to $10 million range. Hancock Park—Windsor Square results are similar, with a a healthy 37 home sales in the $2 million to $3 million ranges, while the $4 million range reported only 2 sales and then only one sale over $5 million. The downward pressure of excess inventory will most likely stabilize the increased demand, and my prediction is that our mid-level luxury market will remain relatively unchanged for 2011.
 
A final market note, property condition increasingly plays a major role in the marketability of your property. Buyers are reluctant to renovate, the properties that tend to linger on the market most, are the ones that require extensive remodeling. In order to sell your property well, it is more important than ever that it be uncluttered, bright and clean. Today’s buyers are a little slower to act before making an offer. While it’s often said that Buyers make a decision in the first 30 seconds, you can be sure they decide which properties they DON’T want to buy in the first 30 seconds. Remember, YOU only have one chance to make a good first impression! For a confidential evaluation of your next real estate sale or purchase, please call Greg at 310-770-9014.