Introduction to LA Luxe Market Slowdown
Los Angeles luxury residential contracts limped along last week to reach a total asking dollar volume of $135 million across 18 properties.
“It’s another slow week in Los Angeles with a fair showing in the single-family segment, but certainly not the volumes we would hope to see,” said Marcy Roth of Douglas Elliman’s Eklund Gomes team, which publishes the weekly report.
Market Overview
The roundup counts signed contracts of Los Angeles County homes listed in the Multiple Listing Service for $4 million or more.
In the prior week, 23 contracts were signed, which was good for $161.8 million in asking dollar volume.
A total of 95 single-family listings and three condominiums entered the market last week, continuing the drumbeat of a possible shift to a buyer’s market in Los Angeles.
Trends and Insights
“Inventory is steadily increasing week over week and while that may be cause for concern to some sellers, we do see that well-priced homes are still going under contract,” Roth said. “Sellers who price according to overall market conditions and don’t consider the micro market conditions of their specific neighborhoods are finding themselves in a waiting game as buyers have options and they are choosing to explore them.”
Top Contracts
Last week’s top home under contract, based on asking price, was 911 North Beverly Drive in Beverly Hills.
The six-bedroom, seven-bathroom home spans nearly 6,500 square feet and is listed for just under $22 million. Built in 1926, the Spanish Revival-designed home was used during Prohibition, according to the listing.
The seller is Los Angeles-based Black Hill LLC, which state filings indicate is tied to talent manager Mark Gillespie.
Sotheby’s International Realty’s Eric Lavey holds the listing.
Notable Mentions
South of Beverly Hills in Hermosa Beach, is last week’s second-largest home that went into contract, based on a listing price of nearly $12 million.
The seller is a trust tied to Dean and Kelli Hallett. Dean Hallett is the president of executive coaching and leadership firm Hallett Leadership. He previously held executive positions at Twentieth Century Fox and Walt Disney Studios.
Joseph Group’s William Joseph and Rachel Joseph have the listing at 2722 Hermosa Avenue.
The four-bed, six-bath home was built in 2020 and totals nearly 4,800 square feet. It has a rooftop deck, elevator that stops at each of its four levels and ocean views.
Related News
Read more
Condos lead LA luxe resi out of slump
LA luxe resi contracts slide to $76M in asking volume
LA luxe resi contracts tally $120M as absorption lags
Conclusion
The LA luxe market continues to experience a slowdown, with signed contracts falling amid increased inventory. Sellers are finding themselves in a waiting game as buyers explore their options, emphasizing the importance of pricing according to overall market conditions and micro market conditions of specific neighborhoods.
FAQs
Q: What was the total asking dollar volume of LA luxury residential contracts last week?
A: $135 million across 18 properties.
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Q: What is the current trend in the LA luxe market?
A: The market is experiencing a slowdown with increased inventory, potentially shifting towards a buyer’s market.
Q: What is the importance of pricing in the current market?
A: Pricing according to overall market conditions and micro market conditions of specific neighborhoods is crucial for sellers to avoid a waiting game as buyers have options to explore.
