Leading realty brokerage firm Westside Estate Agency sees influence of Silicon Valley and Silicon Beach technology companies as a key driver of increasing demand for luxury homes on the Westside
BEVERLY HILLS, Calif., July 21, 2016: The Westside Estate Agency, (WEA), the leading Los Angeles luxury home brokerage firm, has released its July WEA Micro Market Report. This most recent market analysis reveals continued growth in both listings and property values on the Westside of Los Angeles, which includes Bel Air, Beverly Hills, Malibu, Marina del Ray, Santa Monica, West Hollywood, and surrounding areas.
LA’s Westside neighborhoods show strong resilience and growth
Using the historically high valuations attained in 2007 as a baseline, and comparing against June 2016, the July WEA Micro Market Report reveals that many areas of the Westside continue to show home values at historic market highs.
By comparison, the most recent Standard and Poor’s/Case-Shiller 20-City Home Index states that the sale price index increased by 5.4 percent year-on-year in April, following a 5.5 percent gain in March, and that home values are just 9.6 percent below the historic peak of 2007. Shrinking inventories, a healthy job market, and historically low interest rates have helped maintain strong demand.
Influx of tech workers is driving demand
LA’s Westside has traditionally attracted buyers from the entertainment and media industries. However, more recently the technology industry has driven the creation of jobs in the area as well as the formation of startups attracted to the local tech talent. Large, well-known tech companies such as Google, Yahoo, and YouTube, as well as hot startups like Tinder and Snapchat, have already opened offices in Silicon Beach and surrounding Westside areas.
Silicon Valley buyers are on the increase
According to 2015 CoreLogic DataQuick data, the number of Westside homes purchased by buyers who listed a mailing address in Santa Clara County, San Francisco County or San Mateo County more than doubled from the year before, hitting the highest number since 2007.The research firm looked at home sales in the Silicon Beach area, including Beverly Hills, Brentwood, Playa Vista, Santa Monica, Venice and West Los Angeles.