Hat tip to daytrip for sending in this latimes.com article about the surge of high-end home sales across the Southland:
http://www.latimes.com/
An excerpt:
Luxury home sales in Southern California are hitting levels not seen in decades. The number of homes bought for $2 million or more in recent months is the highest on record. Sales worth $10 million or more are on pace this year to double their number from the heights of the housing bubble.
“It’s pretty mind-blowing, to be honest,” said Cindy Ambuehl, an agent with the Partners Trust in Brentwood. “The luxury market has been completely on fire.”
Low interest rates, a strong stock market and waves of cash sloshing in from overseas are boosting demand for high-dollar homes. A record 1,436 homes worth $2 million or more were sold in the six-county Southland in the second quarter, according to CoreLogic DataQuick.
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How are we doing locally? It’s worth noting that the supply of higher-end homes has been surging too (assuming the ‘refreshing’ of listings has been fairly constant over the years).
Below you can see how the market has been shifting upward:
NSDCC Detached Homes Listed/Sold By Price Range
| Year | ||||
| 2011 New Listings/Solds | ||||
| 2012 New Listings/Solds | ||||
| 2013 New Listings/Solds | ||||
| 2014 New Listings/Solds |
These are 12-month stats so you need to extrapolate to compare 2014 accurately (add about 10% to these current counts). You can see how the Under-$1M folks have been left shaking their head – they have about a third fewer homes to consider since 2011!
Third quarter growth 3.9%, Wow. Seems like we have to keep the after burners glowing just to stay in place.
They make it easier to get loans and start to build in earnest it could get interesting.