This year has been a rather trying time for the traditional housing market. As sales continue to lag, the housing market has yet to really take off this season and see any type of healthy activity. One sector of housing that has seen a tremendous amount of activity, that is gaining day by day, is the luxury housing market.
According to a recent report by Redfin, a real estate research company, luxury homes in the top 1 percent price bracket have seen a 21.1 percent increase in sales this year. This follows a gain in 2013 of 35.7 percent and a 17. percent increase tabulated in 2012. In contrast, the other 99 percent of the market is seeing a decrease in home sales this year of about 7.6 percent. The previous two years have seen relatively small gains in home sales with 2012 seeing an increase by 2.9 percent and 2013 recording a 10.1 percent increase.
Ten luxury markets have seen sales growth shoot upwards of 50 percent this year, an indicator that the luxury market is very hot right now. Oakland and San Jose scored the most impressive gains of 96.2 percent and 91.2 percent, respectively. Los Angeles was just barely edged out of the top 10 cities with the most growth in luxury home sales, coming in at 11 with a growth of 38.3 percent. San Diego followed close behind with an increase of 25.7 percent and Orange County came in with 5.5 percent in gains.
Los Angeles Home to Top Luxury Neighborhoods
In addition to tabulating the number of home sales throughout the country, Redfin’s study also took a closer look at luxury markets in identifying what type of properties constitute the luxury market and where the priciest neighborhoods in the country are located. Los Angeles, Orange County and San Diego proved to be top contenders in all areas.
In identifying the variation in luxury markets across the country, Redfin took a look at what the minimum price to purchase a home in the top 1 percent of each market was. While San Francisco topped out the list with a minimum of $5.35 million, Los Angeles and Orange County rounded out the top three with $3.65 million and $3.45 million, respectively. San Diego fell slightly further down the list with a reported minimum value of $2.4 million to buy a home in the top 1 percent in the market.
Los Angeles also reported the top five most expensive luxury neighborhoods with home prices averaging from $11.9 million down to $8.1 million throughout its priciest neighborhoods. The neighborhood of Beverly Glen was reported as the most expensive luxury neighborhood in the country followed by Holmby Hills, Malibu Road, Malibu County and Bel Air. The Orange County neighborhoods of Lantern Village, Crystal Cove and Lido Isle also reported high marks on the list of the most expensive neighborhoods.
Los Angeles is a city that defines luxury living. If you are in the market for a luxury home in Los Angeles, please feel free to contact our team of luxury property experts. We’d love to help you find a great property in this stunning community.
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(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.