The 2019 Market
In February, when National Association of Realtors chief economist Lawrence Yun offered his perspective on the fourth-quarter 2018 market, he noted that “Home prices continued to rise in the vast majority of markets but with inventory steadily increasing, home prices are, on average, rising at a slower and healthier pace.” He considers the signals promising in light of the various hurdles for 2018.
Is his optimism – or at least lack of pessimism – warranted? I think so. Is the luxury marketplace on the verge of disaster? Decidedly not. Here are a few reasons:
The average sales price of a luxury property in Beverly Hills/Los Angeles continues to rise, albeit in smaller increments.
While mortgage rates have ticked upward, they are still affordable and “lower than they were during most of the recession and below average for the type of strong economic growth we’ve been experiencing,” according to Aaron Terrazas, director of economic research for Zillow.
Beverly Hills/Los Angeles is still extremely desirable to international buyers in the luxury market, with lower price per square foot than any other top global destination.
While price growth may moderate, Realtor.com suggests that luxury buyers in the metro marketplace, less affected by affordability issues, will continue to have robust options as inventory is increasing.
The demand for luxury properties among Millennials is increasing as they reach their peak home buying years.
Today’s luxury inventory includes some of the most remarkable estates ever built. I invite you to browse properties currently listed for sale, or contact me for a private showing or consultation after showing.