The luxury housing market in Los Angeles remained white-hot during the third quarter of the year. A survey by First Republic Bank found the value of luxury homes increased by 13% on a year-over-year basis to an all-time high of $2.61 million.
Continuing to drive appreciation of luxury homes in Los Angeles are low interest rates and a continued lack of supply, the survey found.
“Luxury properties are routinely selling for over the asking price and often with multiple offers, said Katherine August-deWilde, president of First Republic Bank.
The Los Angeles Times also recently looked at the boom in luxury real estate in L.A. It noted the number of homes sold for $2 million or more is the highest on record, and for homes worth $10 million or more, sales are on pace to double that of the last housing bubble.
One agent told the Times the current state of the high-end real estate market is “mind-blowing.”
For all of Southern California, there was a record 1,436 homes sold for $2 million or more during the second quarter of the year. In the third quarter there were 1,431 homes sold for at least that amount—a 13% jump from a year earlier.
Los Angeles has always been an attractive option for wealthy homebuyers, and perhaps now more so than ever. As the Time points out, though L.A. real estate is considered pricey, it is virtual bargain as compared to other world-class cities like New York or London.
“Los Angeles can look like a steal as compared to other high-end havens,” the Times found.