Spring is here and so is the traditional start of the “selling season” for homes. Here is the current status of the market:
Homes in the $1-4 million range are selling at a rapid pace. When priced right, they sell within 30-45 days and we are seeing multiple offers when priced correctly. Over-priced homes at every level aren’t selling quickly, as buyers are the ones who recognize the value. Pricing a property too high can potentially lead to a stale listing, multiple price reductions, and risk the property being tainted as an undesirable house.
Don’t be tempted by less than scrupulous brokers who think the way to get a listing is to give the seller an unrealistically high valuation. Homes that are priced correctly will sell at or above their value due to interest and the likelihood of multiple offers.
Homes in the $10-15 million range are not as buoyant and tend to stay on the market until the right buyer surfaces. Buyers in this price range are aware that they often have more time to decide. Additionally, with an inventory of similarly designed and priced houses developed by speculators on the market, there is a good chance that prices will lower as inventory increases and competition heats up.
In the ultra-high-end, the market remains surprisingly strong. Most of these buyers pay in cash and desire the privacy and luxurious amenities they have worked hard to achieve. There are multiple houses either currently listed at or soon be on the market for over $100 million despite the fact that, historically, only one house has sold in this rarified price range.
There is a definite lack of interest from Middle Eastern buyers, and with the Chinese government cracking down on individuals taking money out of the country their buying has also been minimal. The good news is that almost all of our ultra-high-net-worth buyers are US citizens and many reside here in Los Angeles.
Let’s hope we all have a strong selling season.