The High-End Los Angeles Real Estate Market is Booming. Why?
Whether it’s Beverly Hills or Malibu, Bel Air or Pacific Palisades, the high-end Los Angeles real estate market has been the hot topic of real estate this summer. The high end market has really been thriving — but why? Because there are hundreds and thousands of variables involved in the real estate market, it’s impossible to pinpoint a single cause for this development.
The experts at Red Blue Realty agree, however, that the following reasons are, to varying degrees, possible factors in the boom.
Surveys carried out by Red Blue Realty suggest that both buyers and sellers of luxury Los Angeles real estate are “cautiously optimistic” about the future of the economy.
While optimism is important in a slow economy, too much optimism can result in clouded judgment and bad decisions — case in point, just look at the last United States housing bubble. Nevertheless, cautious optimism is good insofar as it can foster the healthy and steady recovery of housing prices.
Besides buying a home to raise a family or to avoid paying rent, the most common reason for owning real estate in the United States is for its value as an investment — this being especially true for high-end real estate.
While few expect property values to soar as high as before the burst of the last bubble, most prospective buyers polled by Red Blue Realty are at least confident that their investment will not lose value, and many are optimistic about potential returns in the future. Almost all of them agreed that they were receiving excellent prices on homes.
Likewise, many of those who currently have high-end Los Angeles homes for sale have either already purchased new real estate or are planning to purchase real estate in the immediate future.
Status, Seclusion and Freedom
In addition to its value as an investment, there are many other less obvious benefits to owning high-end real estate.
To own an expensive home up in the hills — whether it is overlooking a glittering city or a calm ocean — is a symbol of status; it is a culmination of hard work, sweat and tears. Furthermore, high-end real estate is usually secluded, therefore offering peace and quiet away from the hustle and bustle of the increasingly crowed Los Angeles County.
Lastly, expensive property allows for more freedom and flexibility when it comes to personalizing one’s home; regardless of whatever an owner does with their house, the land itself will retain its value.
All in all, the recent boom in the high-end Los Angeles real estate market is likely a good sign for the real estate market at large. Whether it is a luxurious mansion in Malibu, or a modest single-family house in Sherman Oaks, now is the time to find a great Los Angeles real estate and buy a home.