It was an expensive first quarter for the luxury housing market in Los Angeles. According to the appraisal firm MillerSamuel, the median price of a luxury home in Tinsel Town was up a whopping 17% compared to the first three months of 2016.
MillerSamuel reports the median price of a single-family luxury home in Los Angeles was $9.7 million in the first quarter. In addition, Los Angeles luxury condos saw prices jump 8.9% to $2.45 million. In its report on the study, Mansionglobal.com noted Los Angeles was one of the only major cities in the U.S. where luxury homes outperformed the rest of the market.
Officials for MillerSamuel noted the big price jump in luxury home prices in Q1 was not necessarily a result of appreciation. Rather, the double-digit price growth was more the case of home sold this year were in general bigger and of better quality than in 2016.
Aside from luxury home prices, there were a couple other data points of note from the study. One is that it took longer for luxury homes to sell in the first quarter than a year earlier. Homes were on the market an average of 112 days in Q1, which is a full two weeks longer than the first three months of 2016.
Jonathan Miller, chief executive of MillerSamuel, summed it up by telling MansionGlobal “inventory is moving just a little bit slower, but it’s not slow.”
The luxury real estate boom in Los Angeles has taken particular root along the coast. Malibu saw home prices jump by double-digit percentage points, while in Venice-Mar Vista—an area now known as Silicon Beach—luxury homes are flying off the market. Given an extremely tight supply, luxury homes in Silicon Beach are selling in mere weeks of listing.
Miller added: “The boom in the waterfront job growth and the shortage of supply are just wreaking havoc. This is a really tight market.”