If you’ve been shopping for luxury real estate in the fashionable Los Angeles enclaves of Beverly Hills or Bel Air, now is as good a time as any to jump into the market. The California Association of Realtors reports that the market in Southern California finally began to cool a little bit late in the summer from its super-heated apex earlier in the year.
Beverly Hills real estate prices are still elevated, however, many areas are beginning to see a shift toward a more neutral market. Resulting in the supply of Beverly Hills homes matching up better with the number of buyers.
"The California housing market continues to normalize from the white-hot conditions we experienced at the height of the pandemic with both sales and prices moderating as we slowly transition from the peak home-buying season into the fall," CAR President Dave Walsh said in a news release.
Understanding the Numbers
The median value of Beverly Hills property for sale is $3,860,991, an increase of 8.7% during the past year. The website reports that the median value of Bel Air homes for sale is currently $4,051,425, which is a rise of 11.4% in the last 12 months.
For us, this isn’t a surprise. Southern California’s real estate market is on its fifteenth month of double-digit median home price increases, despite the summer’s slowdown compared to last year’s boom. We anticipate slowly increasing median prices over the next year. The entire state’s median home price jumped upward 12% in October 2021, likely a reaction to the increased lack of inventory. Beverly Hills real estate and Bel Air homes for sale continue to be hot commodities, and they won’t last long on the market. Over 50% of homes in Beverly Hills and 44% of homes in Bel Air recently on the market sold in under 30 days.
What You Should Know About Inventory
In a balanced market, supply inventory typically fluctuates between four and six months, and it is established by comparing the number of active listings and pending sales on the last day of the month to calculate the remaining supply. Currently, the Los Angeles metro area is at a supply inventory of approximately 1.9 months, and the luxury market is even tighter.
Because Beverly Hills’ and Bel Air’s real estate markets are in a low-inventory position, this uniquely favors sellers. Home prices are expected to continue increasing as inventory stays well below average of the typical balanced market.
The number of sales have also decreased as fewer homes have been available. In September 2021, there were twelve Bel Air homes sold, and in October 2021, only nine. Beverly Hills sold real estate saw a similar trend, with 26 homes sold in September 2021 and 29 sold in October 2021.
What to Expect from Selling Prices
Low-inventory markets often see listing prices veer toward the higher end, but what can you expect properties to sell for? For luxury real estate, location plays a major role in the final sale, and it’s here that we see a sizable disparity between Beverly Hills and Bel Air markets.
Of Bel Air’s nine properties sold in October, six homes were sold under the asking price, zero homes were sold at the asking price, and three homes were sold over the asking price. However, in Beverly Hills, eighteen homes were sold under the asking price, four homes were sold at asking, and seven homes were sold over the asking price. This indicates that the market is subtly shifting from its recent peak.
How to Buy a Beverly Hills or Bel Air Home You Love
When you’re ready to find a Bel Air home to purchase, working with an established local real estate agent is key to navigating this luxury market. Hire an outstanding real estate agent who has years of experience in the exclusive neighborhoods on the west side of Los Angeles. An agent like Dean “Dino” Mandile will help you find and view properties that have all the amenities and features you want, whether they’re listed publicly or privately.
Once you’ve scoured the market, your agent will help you write a competitive offer that has a great chance of being accepted by the seller, and in the current market state, this is a crucial step. This is where your agent's extensive knowledge of the market comes into play. Submitting a “clean” offer — one with few or no contingencies —- can strengthen your offer, another key piece in securing the luxury property of your dreams.
If you are in the market for Beverly Hills property for sale, contact Dean “Dino” Mandile for superb client service.