When it comes to sales, what is really going on in the Greater Los Angeles and Beverly Hills Real Estate markets? Observations by a Beverly Hills Realtor.
Today I received an email link from one of my concerned client’s. The link was giving the gloom and doom headline along with several cut and pastes taken from the National Association of Realtors (NAR’s) statistics to substantiate the message. See for yourself as I have highlighted the gist of it here:
“Price reductions 29% since last month” and “Sales are down since last month”
This headline in itself does not put things in proper perspective since pre-Pandemic shutdown these were the standard prices and sales statistics. As a Beverly Hills Realtor, for the past two years I have been joking that the world is coming to an end, but real estate is on FIRE. Why? The answer is simple, lack of inventory with buyers who wanted to move out of crowded urban areas to more suburban places where there was a bit of a distance between their neighbors via and could offer a backyard. Buyers were willing to pay a premium since because of the Pandemic.
“Annual Foreign Investment in U.S. Existing-Home Sales Climbed 8.5% to $59 Billion, Ending Three-Year Slide” and “International buyers purchased $59 billion worth of U.S. residential properties from April 2021–March 2022, up 8.5% from the previous year and breaking a three-year streak of declines. The 98,600 existing homes sold – the lowest since NAR tracking began in 2009 – were down 7.9% from the previous year. In terms of overall dollar volume, rising foreign buyer purchase prices offset the annual decline in homes sold”
Let’s pay particular attention to the last sentence: In terms of overall dollar volume, rising foreign buyer purchase prices offset the annual decline in homes sold’
What you need to understand is that foreign investors know this is a good time to buy. Clearly when the local U.S. buyers are wary of making a home purchase due to increased interest rates, inflation and recession as they read in the news media headlines this causes a pause in price increases as well as competition. So the foreign investors are smiling and thanking the news media. While the news media is all about “headlines” without facts or the whole picture to support them, the international buyers do their homework.
Why were purchases of international buyers down in the U.S. for the past two years? One obvious answer was the lockdown that prevented international travelers coming to the United States.
One of my clients had to wait two years before he could come to Los Angeles. Now he is ready to buy because he understands that whatever he buys he will be able to rent and make a great deal of profit by doing so. He is a cash buyer who can not only buy, but negotiate on the price points since he has little or no competition.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) firstname.lastname@example.org or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708