The luxury real estate market continues to lead the way toward recovery. Sales of homes priced at or above $1 million rose through the third quarter, even as the traditional side of the market persists in making a slow and steady recovery. The luxury housing market was the quickest to recover following the housing market crash and continues to benefit from a booming stock market, low interest rates and an increased interest from foreign home buyers.
According to Redfin, a real estate research center, sales of million-dollar-plus homes gained by 9 percent from the same time period last year. The overall market hasn’t been as fortunate as the total amount of home sales declined by 1.2 percent. Luxury home sales have made a remarkable recovery since the worst of the recession, however the recent gains aren’t as pronounced as when the luxury market was at its height. The largest margin of luxury home sales gains was noted back in the fourth quarter of 2012 when they shot up by nearly 60 percent.
Los Angeles and many other California cities continue to be the leader in luxury home sales as well. San Francisco took the top spot in Redfin’s million-dollar home rank with 782 homes priced above $1 million sold in the third quarter of 2014. Los Angeles trailed ever so slightly with 761 million-dollar homes sold. Los Angeles lead San Francisco in the average luxury home sale price with a value of $2,189,000.
The luxury market in Los Angeles is also gaining strength as the number of $1 million-plus homes sold in the third quarter of 2014 gained by 16.4 percent and the average sale price of luxury homes gained by 7.8 percent.
Los Angeles’ Overall Real Estate Market Maintains in Slower Months
Outside of the luxury market, the real estate market in Los Angeles is indicating a strong demand for homes on all levels of the market. Altos Research, a California-based real estate analytics company, indicates a strong median home value that is likely being bolstered by an eager buyer base wanting to scoop up all available homes in Los Angeles.
Altos reports a current single-family home value of $627,238, which is a seismic increase from the median home value at the beginning of the busy selling season when it was around $500,000. Prices plateaued in Los Angeles in early July and have yet to come down considerably although there has been a slight downgrade over the last few weeks.
Demand for homes has gained throughout the fall as many home owners take their homes off the market to concentrate on the busy holiday season. Altos measures supply and demand levels thought a unique value known as the Market Action Index. With 30 as its neutral value, the MAI of Los Angeles is currently a very seller-favored 40.90. This value indicates a lower amount of inventory for buyers to choose from. This is giving sellers the edge when it comes to negotiation and marks an advantageous time to get luxury homes on the market.
If you are interested in learning more about Los Angeles luxury homes for sale, please feel free to contact our team of property experts today.