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surge

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/business/la-fi-luxury-home-sales-20141124-story.html#page=1

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
0-$1M
$1M-$2M
$2M-$3M
$3M+
2011 New Listings/Solds
3,028/1,663
1,446/674
447/154
410/93
2012 New Listings/Solds
2,362/2,039
1,313/819
404/194
415/133
2013 New Listings/Solds
2,140/1,750
1,713/1,074
560/259
514/168
2014 New Listings/Solds
1,791/1,263
1,723/938
539/218
538/161

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!

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