The Los Angeles real estate market continues to be hot, especially in the luxury market. While other type of home sales have floundered, luxury property sales are on the rise and the expansion in that market has led to shifts in where you’ll find the best deals.
2015 saw the continuation and growth of trends that emerged in 2014 when sales in LA’s luxury real estate market grew by more than 38 percent, even when sales in the rest of the market dropped by 12 percent.
In a study of the national luxury housing market, Forbes pointed out why West Coast cities like Los Angeles are so attractive to buyers. While year round warm weather and celebrity neighbors are great draws, experts say it really comes down to value.
“Compared to New York City, buyers arguably get a lot more for their money on the West Coast,” said Forbes real estate contributing writer Betsy Schiffman. “In Southern California, any house that costs more than $10 million is almost guaranteed to have a wine cellar, gym, screening room and a pool, which helps justify the astronomical price tags. In Manhattan, multimillion-dollar home buyers are often happy to have exposed brick and a washing machine; a new wave of luxury condos might include a parking garage, a shared fitness center and a communal wine cellar; for the upper crust, a Central Park view is as luxurious as it gets.”
LA’s luxury housing isn’t limited to one neighborhood, giving you a lot of options in picking the best home for you. This year’s rising neighborhood is Pacific Palisades, which hit the top of the luxury market with a 94 percent increase in single family homes.
“The revitalization of the Pacific Palisades area is clearly underway as the Caruso Development at the Palisades Village nears completion and the home sales increase is a clear indicator of this compared to the same three month period in 2014,” said Frank Symons, executive vice president and chief operating officer of Sotheby’s International Realty’s Western Region. “Since June 2015, the Pacific Palisades market has not showed any signs of slowing down.”
Although Pacific Palisades has seen a big bump in high-end home sales, it’s not the only hot neighborhood in Los Angeles. Cheviot Hills and Westwood each saw 50 percent increases in luxury home sales, followed closely by Beverly Hills with a 46 percent increase.
No matter where you want to live in Los Angeles, there are plenty of options.
The Future Looks Bright
No one is expecting Los Angeles to lose its allure anytime soon and the University of Southern California has decided to invest in the future of real estate development.
USC has offered a master’s degree in real estate development for three decades, but has now added an undergraduate Bachelor of Science program to its roster.
“This undergraduate program reaffirms our commitment to educating the next generation of leaders in the real estate industry,” said USC Vice Dean Jack H. Knott. “With this degree, our goal is to produce students who understand the changing landscape of real estate and who are prepared to make an immediate contribution on their first day in the workforce.”