Emerging from a four-month lull, the Beverly Hills housing market shows signs of shining bright
Even if real estate in glamorous Beverly Hills is a rung above many other areas in the U.S., it’s still subject to those forces that flip a buyer’s market over to a seller’s market and back again.
The most recent evidence of this was a summer swoon in the median listing and sales price of homes in the Beverly Hills market area. Between May and August of this year, the list price of single-family homes decreased by 4.67 percent. In that same period, the sale prices increased by almost 35 percent, suggesting a correction in market conditions that had seen home values skyrocket over the past five years.
Although plenty of fortunes find their way into the cash registers on fashionable Rodeo Drive, Beverly Hills housing has spent much of this decade in a hot seller's market. The increased value gave the city something of a real estate resurgence, although some may argue it never really went away relative to other markets.
Looking back over the past half decade, single-family home values increased from $2.4 million in September 2013 to more than $3.4 million today
The same report also reflects more than a 6 percent increase from the same time 12 months ago. Even if the recent data is considerably less compelling and the numbers have settled into a more modest range, there is still reason for optimism in spite of the summertime lull. Forecasts call for a more buyer-centric market, but the overall health for Beverly Hills housing should remain favorable with a predicted increase in value near 4 percent.
Looking at a few of the individual neighborhoods, the Beverly Hills Post Office suffered the biggest hit in overall performance. Average selling price in the area closed the third quarter at $3.1 million, measured against an average list price of $3.25 million, down 11.5 percent and 14 percent from the same quarter last year, respectively.
For the higher-priced areas of Beverly Hills proper and Bel Air-Holmby Hills, the news is far more upbeat. For its part, the primary market area in Beverly Hills saw sales increase 3.3 percent to $5.26 million from last year’s third quarter. In that same timeframe, list prices also rose 2.5 percent to $5.56 million.
The real showstopper gains occurred in Bel Air-Holmby. The average sales price topped out at $4.4 million, which represents a 33 percent increase from last year’s third quarter of $3.3 million. List prices also increased along similar lines, reflecting a 35 percent climb to $4.7 million.
The number of combined homes sold for the three markets remained nearly identical for both quarters: 152 from July to September 2018 versus 150 over the same three-month span in 2017.
Even with continued ebbs and flows and a resettling of conditions, the Beverly Hills housing market appears secure for the foreseeable future. Similar to high-end art, an address with Beverly Hills attached to it comes with plenty of status. As long as there are four-walled canvases of opulence and prestige west of the Hollywood Hills, there will remain a healthy marketplace willing to purchase a masterpiece.