Southern California luxury estates are in extremely high demand. Whether buyers and sellers are California natives or have arrived in Los Angeles for the first time, the beauty and amenities offered by living in Southern California are unmatched almost anywhere
While 2013 was noted globally for wealth creation as the global economy continued its recovery, Los Angeles and Southern California luxury estates became known globally for a huge leap in supply of the most exclusive properties while seeing their time on the market drop by an eye-popping 47%. The market for the highest end luxury, $5 million and up, is extremely strong as estates of this size are selling in 77 days on average The market experienced a 40% jump in supply and still sold faster in Southern California than every other market except one world wide. Southern California broke records with 4,514 sales at 2 million plus, an increase of 33% and L.A. County also eclipsed previous highs with 2,628 sales.
Luxury estates are becoming to a certain extent a global capital market and the world is embracing the incredible values and offerings of the Los Angeles market. The upswing in pricing and demand in L.A.’s luxury market was not only fueled by local billionaires, many foreigners, house flippers and celebrities added to the mix. A lot of foreign money is funneling into SoCal properties, in particular Beverly Hills and Bel-Air which are still considered good value by comparison. It’s a real estate phenomenon that when people start paying more for houses, other people follow suit and don’t mind paying more, and so on and so on. With home prices rising, equity gains have prompted the segment of the market that was waiting on the sidelines to make their move releasing pent-up demand