For the past eight years I've defined luxury homes in the local real estate market by one primary criteria--price. When I began my local real estate blog, Palos Verdes Lifestyle, in 2007 the dividing line was rather arbitrarily drawn at $2,000,000 as the defining value marker.
The definition of luxury homes in the local real estate market remained stable during the real estate recession years and throughout the equity gain-back years. The price criteria of luxury homes often falls into sub-categories that included coastal location with view, larger than average sq. ft. and superior condition.
The rise in real estate values in Palos Verdes and the beach cities of Manhattan, Hermosa and Redondo require an adjustment in what constitutes a luxury residence. Last week as we toured new listings, I commented to Josh, "$2,000,000 appears to be the average price for a Palos Verdes home. I think I need to re-evaluate my definition of luxury and move the bar."
A little research reveals my observation was correct. Out of 182 single family homes currently for sale in Palos Verdes, 73 are priced at or above $2,000,000. The Beach Cities have even more persuasive statistics--66 of the 119 properties for sale are priced above $2M. It is time to raise the price bar on what defines a luxury home in the South Bay of Los Angeles to $3,000,000.
Ongoing low-interest rates and low inventory created a strong market for sellers, plus untempered demand for coastal properties propelled the price of coastal view properties to new highs. So it's bye-bye to $2,000,000 and hello $3,000,000 for buyers who want to purchase a luxury home in Palos Verdes or the Beach Cities in the South Bay of Los Angeles.
The inventory of $3,000,000 properties for sale is ample in both the Beach Cities and Palos Verdes with a total of 76 luxury single family homes for sale in the combined areas--39 in the Beach Cities and 37 in Palos Verdes. The news on interest rates remains positive for the summer of 2015 with the Feds hinting there may be a series of interest hikes beginning in September. With 76 choices available and low-interest rates still available it seems the summer of 2015 will continue to present a market with high demand and high prices for sellers of luxury homes, and low-interest rates but ample inventory for buyers.
If you are considering selling or purchasing a luxury home in the South Bay of Los Angeles contact Charlemagne Int'l Properties at ToeringandTeam@gmail.com or 310.493.8333 to provide you with the information and guidance you need to sell or purchase a property.
Palos Verdes Luxury Homes ($3M+):
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Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.