The Economic Outlook of the Beverly Hills Real Estate Market
Beverly Hills Luxury Homes for sale
Is the real estate bubble bursting? Foreclosures are at all time high yet prices in the Beverly Hills and Westside real estate market continue to rise. Homes in the West Hollywood Hills market, north of Sunset and Doheny were selling for $1.5M last year however today your lucky if you can find a 3 bedroom with a view and pool for under $3M.
The Beverly Hills market is still very active but there is a shortage of inventory. In a good or bad market, an incorrectly priced home will remain unsold until the market catches up with it or the seller reduces the price.
Supply and demand will set the price that people will pay. With all that is going on, buyers still seem to be paying whatever it takes to be in Beverly Hills. Maybe not as fast but prices are up some 5.5% from last year.
As the city experiences new growth, there is a new hot spot. The area is east of Spalding Drive, west of Beverly Drive, south of Wilshire Blvd. and north of Olympic Blvd. The proximity to shopping and restaurants is excellent. Buyers are paying as much as $3M for a tear down on a 60×128.5 foot lot.
And if that’s not in your budget how about this. A 3,000 square foot condo just sold in days priced at $1.9M. It fell out of escrow and there were 3 backup offers and its in escrow again. New condo construction in Beverly Hills is set to come on line between $2,000 and $3,000 per square foot.
Candy and Candy out of London, made what they felt was a deal with the purchase of an 8 acre site in Beverly Hills, the previous site of Robinson’s/May. Known as 9900 Wilshire Blvd., the Candy Boys paid $500M for a site allowing the construction of 252 super-luxurious condominiums on busy Wilshire Blvd. overlooking the Los Angeles Country Club next to the Hilton Hotel and adjacent to Century City. That pencils out to about $1,984,127 per unit land cost. That’s a deal!!!
Beverly Hills commercial is setting record prices as office space is selling as high as $800 per square foot and retail on South Beverly Drive is commanding upward of $2,000 per sq ft.
If your a seller, there may be no better time to cash your chips in. For all you buyers, good luck.