Beverly Hills Real Estate Market 2017

bevely hills real estate market Gangbusters! Median Home Prices in the Beverly Hills real estate market have been soaring. How about 10 percent in a year. The Median List Price is $4.4 million. The Median List Price in 2014 was only $3 million. The price per square foot is $1000. The Median Closing Price is $2.5 million. If prices rise too high and the demand decreases, the Beverly Hills homes market could be affected. Home prices could indeed stabilize as interest rates rise.

Presently, there about 275 homes and condos are for sale in Beverly Hills. It’s a seller’s market and the tax rate also favors sellers.

Interest Rates

Buyers are taking advantage of the low interest rates, rates that are only increasing very slowly. Interest rates on a 30-year fixed mortgage average about 4%. But quite a few buyers in Beverly Hills pay cash. These affluent buyers are not much affected by changing interest rates for mortgages.

Why Beverly Hills Home Prices are Up

bevely hills real estate market Several reasons for the rising prices in Beverly Hills come to mind. Beverly Hills features an excellent central location with fantastic views. It is easily accessible to the Pacific Ocean and Interstates 101 and 405. The stunning Santa Monica mountains are immediately west of the city. So, there is substantial demand for real estate in prestigious Beverly Hills, Bel Air, and the surrounding areas.

Los Angeles Real Estate Market

Putting the Beverly Hills market in perspective, home prices are also up throughout Los Angeles and in the state of California. Prices in Los Angeles rose 7.8% in 2016. But these home prices are only now returning to pre-recession values, as per Zillow. Forecasters expect the trend of rising home prices to continue in the Los Angeles area.

Can People Afford to Buy Homes?

Many homes are priced out of the reach of buyers. In fact, only about a third of Californians own their own homes. Few real estate bargains can be found. The inability of potential homebuyers to qualify for mortgages sustains the rental market. And it adds value to investment properties. The rental market is booming.

Improving Incomes

Employment is steady and improving. But are salaries keeping up with the rising home prices in Beverly Hills and Los Angeles? There may be more qualified buyers. As some of the Dodd-Frank regulations are loosened, borrowers may find fewer restrictions in the mortgage market.

Into the Future

bevely hills real estate market Whatever we guess about the market, the months of January and February are not necessarily accurate indicators of the yearlong markets. We can reasonably surmise that lower priced properties will be snatched up quickly while some of the gorgeous mansions in the Beverly Hills real estate market could take some time to sell. Cash buyers and luxury investors, time to make your offers on these treasure homes.