Reflections on 2022 - Observations by a Beverly Hills Realtor: Endre Barath, Jr.
Having been a Realtor for the past 27 years in the greater Los Angeles real estate market, I can quite frankly say that 2022 has been one of the most challenging years I have ever experienced. As a seasoned agent of course, I have seen variations of the pendulum swing over the decades, but nothing in my opinion compares to the roller coaster ride of 2022.
For example, the year started out in what I call a sellers' market feeding frenzy. Buyers were offering $100,000 or more over asking list prices and transactions changed from Just Listed to Just Sold in a matter of days. I advised buyers not to remove all their investigation, loan and appraisal contingencies; some listened, while others just wanted to buy the property.
In the second quarter of the year, I noticed a shift in the market as the Commercial vs. Residential real estate market started to cool along with vacant land sales while the single-family market remained very active. We all remember when mortgage rates started to climb and made it to about 3.2 percent, and by the third quarter we were hovering around the high 6 to low 7 percent range. I advised sellers that it was the time to list your home if you were thinking of selling. Next came the
For as long as I've been practicing real estate, I have been saying that Real Estate should primarily be considered a place to call ‘home’ where you enjoy your very own space both inside and outside if you are lucky enough to have a private back and/or front yard. It's a place where you can put nails in the wall for pictures and paint the walls purple if you so choose; a place where you don't have to stress over a rent increase although there's always good old property taxes! Finally, you can feel confident knowing that in the long-term the value of your home will increase no matter what the pundits say. For example, had you bought a home in the flats of Beverly Hills 25 years ago you could have had it for roughly $850,000 -$1.2million. Today that same home would sell for around $8,000,000 -$15,000,000 which further confirms
Colleges are of the simple economic thought principle that “supply and demand” determines "values''. For the past three years, the Real Estate Inventory supply has been tight in the greater Los Angeles area. What has changed since the third quarter of 2022 is that demand has diminished; thus, we flipped from a Seller’s market with limited inventory to a Buyer’s market with limited inventory. Political involvement with policies such as rent control and eviction moratoriums have complicated matters further affecting the multi-family and commercial markets.
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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) email@example.com 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