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Competing in the California Homes Market

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California homes sales in the $1+ million range juxtapose homes priced under $500,000.  For 2017 Q1, fewer homes priced under a half million dollars were on the market.  And more than the usual number of $1+ million homes sold.

Why Trend towards Luxury Homes

california homesLet’s define luxury homes here.  Prices over $1 million ranges from beach cottages to palatial estates.  In Southern California, we’ re not just looking at castles.  Many home prices in San Jose, Los Angeles, and San Diego are rising because of build out.  There are few places to develop on the ocean or in the mountains.

Although we never know for sure all causes for certain events, we can scan the horizon for some of them.  Let’s discuss some major components.

  • The exalted stock market is handing out more cash.
  • Job growth and higher paying jobs are available.
  • More employees want to live close to their companies and amenities.
  • Investors are turning money into real estate investments.
  • Consumer confidence.
  • Interest rates remain low.
  • Inheritances from the “savings minded” generation are in play.
  • Location in a pricey area may be more important than features of a home.
  • Price appreciation is pushing more homes over $1 million.

Stats for Luxury Homes Q1 2017

Let’s turn to the May 17, 2017 article by Andrew LePage of Core Logic.  “California Million-Dollar Home Sales Climbed to a Q1 Peak as Stocks Soar.”

Approximately 11 percent of the total homes sold for $1 million or more.  To be more exact, 10,562 buyers purchased homes priced at $1 million or more during Q1 this year.  The record in this category was set last spring.  Almost a third of the buyers paid cash.

The average luxury home size was 2739 square feet, four bedrooms and three baths.  The average lot size was 17,368 square feet.  The 92620, 92130, 95125, 92037, and 92651 zip codes saw more $1+ home sales than others.

Over 2500 buyers purchased homes priced over $2 million this winter.  Cash was the means of exchange for 43 percent of these properties.  The record of 3,508 sales $2+ million was set 2016 Q2.  We’ll see what happens during Q2.

Stats for Homes Priced below $500,000

On the other end of the spectrum, we see more homes appreciating and moving out of the under $500,000 range.  Sales in this category plummeted to arrange not seen since 2008 Q 1.  After all, there are fewer homes available to buy in this price range.  Inventory is tighter than ever.  Even so, almost 60 percent of total homes sold during 2017 Q1 were priced below $500,000.

Buyers searching for real estate priced under $500,000 compete with a new cash flow.  In areas with great demand, the availability of money is driving up prices.  So, it is good to prepare for the unexpected bidding war.

Buying and Selling Southern California Homes

For information on luxury California homes for sale, call Bob Cumming of Keystone Group Properties at 310-496-8122.

Southern California Condos for Better or Worse

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Southern California Condos for Better or Worse

Reasons to Buy Condos vs. Detached Homes

Southern California CondosCondominiums are a step above renting apartments because they allow owners to build equity and resell.  In addition, Southern California condos provide a sense of community in the big metro areas such as Los Angeles.   On the surface, condominiums are usually priced lower than similar homes and have a few extra amenities. Amenities usually include landscaping services, pool maintenance, fitness rooms, and building repairs – essentially a carefree lifestyle.

The quality of the condo association can make all the difference. Well-managed condominiums are organized. The Association sets aside reserve funds for capital improvements and regular maintenance such as painting.  And they keep up with everything.

Reasons to Think Twice About Condos

There can be some deal breakers in the condo lifestyle.  Some people love him and others regret their condo purchases.  Many do not like sharing walls or ceilings and floors with other people and they don’t like the outside noises that they have no control over.  Along the same vein, many of the condominium complexes share entrances, making the comings and goings of the residents fairly public.

Southern California CondosFinancial problems can add stress. Owners are responsible for repairs inside the condo.  And remember to factor in the ongoing costs of all of the amenities and services that are being provided.  Some Associations issue emergency repair assessments or thousands of dollars because they have no reserves. Then too, condominiums may be difficult to sell if several go on the market at the same time.

Luxury New Condominiums for Sale

So if you decide on a condo, why not go new?  Many of us like vintage and repurposed possessions; others prefer brand spanking new everything. So it goes for Southern California condos. New, of course, means updated design and technology. Brand new means gleaming surfaces without blemishes and the immaculate new appliances, new tile, carpet, and hardwoods, new plumbing, new fixtures. Buyers looking for new homes in Southern California may often get to the negotiation table in time to select colors and finishes.

Southern California Condos

Everly at Playa Vista, CA

In western Los Angeles, it is worth the time to check out these new condominiums for sale in Santa Monica, Venice, and Beverly Hills:

  • 512 Brooks Avenue, Venice, CA
  • 929 20th St., Santa Monica, CA
  • 447 North Doheny Dr., Beverly Hills, CA
  • Everly at Playa Vista, CA
  • 460 Palm, Beverly Hills, CA

Established Condominium Complexes

Sometimes it is nice to be a part of an association that has a little experience.  Ask about the slightly used condominiums in the area, such as:

Southern California Condos

225 South Hamilton Dr. Unit 108, Beverly Hills 90211

  • 225 South Hamilton Dr. Unit 108, Beverly Hills 90211; 2150 square feet, $1.5 million
  • 1046 Princeton Drive Unit 205, Venice 90292; 3030s square feet, $1,895,000
  • 4080 Glencoe Ave. Unit 216, Marina del Rey 90292; 1530 square feet, $1 million
  • 447 N. Doheny Drive Unit 400 to, Beverly Hills 90210; 3937 square feet, $3,950,000
  • 939 20th St. Unit 5, Santa Monica 904 03; 2973 square feet, $2,885,000. Unit 7 1886 square feet, $1,850,000

California Condo Market

There are an increasing number of buyers in the condo markets.  Throughout the State of California, condominium communities and townhouse communities are in high demand, there are hundreds of floor plans ranging from 1 to 5 bedrooms. Prices range from the low $200,000-$20 million.

Southern California Luxury Real Estate Agent

For information about Southern California condos and luxury homes, please call Bob Cumming of Keystone Group Properties at 310-496-8122.