The luxury housing market in Los Angeles may not be immune to Covid-19, but it seems to have built up a strong resistance to the impact of the pandemic.
Many top luxury brokers agree that high-end properties are in demand in L.A.
Since Oct. 1, 2019, 10 homes on the market have sold for $33 million or more, according to data from Redfin. And a number of off-market home sales in the past six months have topped $100 million.
Former Dreamworks Chief Executive Jeffrey Katzenberg recently sold his custom-
built home in Beverly Hills for $125 million. And Amazon.com Inc. founder Jeff Bezos made headlines this summer when he purchased the Warner Estate from David Geffen for $165 million.
Before that, the record for highest priced home sale in the area was set late last year when the Chartwell Estate, also known as the Beverly Hillbillies Mansion, sold for $150 million to Fox Corp. Chairman and Chief Executive Lachlan Murdoch.
Compass’ Sally Forster Jones, No. 5 on the Business Journal’s list with $502 million in sales, said “the entry level and the high end are the strongest parts of the market.”
Most agents agree on two things: Sellers are being more realistic on price, and buyers want land.
Before the Covid-19 pandemic, there was more aspirational pricing, Jones said.
But now, she added, sellers have “less aspirational pricing and more realistic pricing. There’s no more overpricing, and people coming in and negotiating. Sellers are being reasonable. Buyers and sellers are on the same page. The sellers that are coming on the market well priced, their homes are selling.”
Realistic asking prices can get homes sold quicker, he added.
Most high-end agents say there’s been a push by buyers for more land. Many still want views, but land is a higher priority — they want land, pools, offices and privacy.
“People are spending much more time at home and working frequently from home,” Jones said. “They want to have privacy. Gated properties are very much in demand.”
Home offices and “Zoom rooms” also top wish lists for luxury buyers, Jones said, along with wellness features like gyms.
The top home sales in the past year were off-market listings, meaning they did not appear on the Multiple Listing Service.
Some buyers and sellers prefer to keep things off-market for privacy reasons, and some sales occur off-market because sellers were not actually looking to sell a property until they got a high-priced offer.
And there can be other reasons things sell off-market.
“If they are new properties and they are being developed right now, we are having buyers looking at properties before they are complete,” Jones said. “Those are selling off-market. On the newer luxury properties, that is clearly happening, where they are being viewed, and potential selling, as well.”
The strength in the high-end market is expected to continue through the end of 2020 and into 2021, the agents said.
Source Los Angeles Business Journal
Written by Hannah Madans