The demand for luxury homes in Los Angeles is on the rise because of a synchronized combination between international and domestic buyers. Since 2008 building permits have increased rapidly thereby giving rise to new houses and apartments being modeled for sale. Keeping the recovering housing market in consideration and the residing low interest rates, international buyers prefer to invest in real estate. Therefore builders are finding reason enough to construct new luxury homes in Los Angeles.
The present luxury Real Estate scenario in Los Angeles.There is a slight doubt as to whether the demand for new homes will equal the number of housing projects coming up, especially in areas like Hollywood Hills, Vine district and downtown Los Angeles. For example projects coming up in Trousdale Estates in Beverly Hills and in Bird Street in Hollywood Hills, are all multimillion dollar projects.
At this point a review has reflected that many buyers show interest to buy resale houses or owner sale houses. The motive behind this preference may be the hope to strike low rate deals than new constructed houses. But what the review did not see is the low inventory of houses for sale in Los Angeles and other major low market conditions. However with few resale homes available in Los Angeles, new top dollar luxury homes in Los Angeles can be pretty good in demand.
Expectations to meet in and after 2014 Real Estate construction in Los Angeles has increased consistently since 2013 but inventory of houses for sale has not increased in the same pace. So if this trend continues possibilities are there that property prices may increase but buyers might shun investment due to high price rate. Now this low inventory rate can be checked with new luxury homes coming up in more numbers in Los Angeles. But instead of keeping prices in highest dollar bracket, builders must consider on giving out new houses at affordable rates to promote more buying of luxury homes. At the same time if bank do not hike interest of home loans suddenly, it is expected that luxury homes in Los Angeles will be in high demand in and post 2014.
How Pocket Listing is controlling Los Angeles Luxurious Real Estate Market.It is new trend with home sellers that they prefer doing a private listing of their house rather than listing it in open market. Los Angeles is the entertainment capital of the world so obviously it houses world’s richest industry professionals too. Now these professionals are always on the guards to secure their personal business. In this case it is natural if they would prefer to trade with their houses in private market. It is estimated that 30% of luxury real estate deals are done in the category of ‘Pocket Listing’ which is also called ‘Quiet Listing’.
Quiet Listings are high, especially in celebrity prone areas like Hollywood Hills, Beverly Hills, and Bird Street etc. Now the disadvantage of Pocket Listing is that only selected people can view a property that is up for sale. So price war will be negligent as there wouldn’t be too many bidders for the house. But on the flip side buyers will agree to pay premium amount for a luxurious house to keep it away from the eyes of open market. People who are ready to spend over market value for a house, that house has to be in A grade location and with top grade amenities.
Buying overpriced house in the blue collar areas of Los Angeles can be challenging with uncertainties dangling around you. But with a trusted agent along with you, the process of buying your dream luxurious home in Los Angeles can be a happy experience and a process which you enjoy.