Buyers and renters are out in full force and getting back to work!
Q1 outpaced the last 10 years and Q2 2021 was even stronger! All data looks great versus Q2 ’20 because the city was in lockdown. The market momentum from the last two quarters is the real story. Record low interest rates, pent up demand and demographic trends continue to be the drivers. Strong overall stock market performance and high levels of home equity among “trade-up buyers”, those “downsizing” or moving elsewhere fuel confidence. Many buyers are chasing few properties so multiple offers are the norm.
The higher end of our market ($7MM+) started move in Q2 and is setting new records. We are also seeing an influx of renters from NYC and overseas coming to work in Los Angeles. Most want move in ready properties with swimming pools. In fact over 55% of sales in Hancock Park & Windsor Square HPOZs had highly coveted pools.
City wide the market over $5MM is the best ever. There have been 535 closed sales through June versus 252 sales for the same time period a year ago (+112%). Americans purchased the vast majority and the hottest neighborhoods in terms of prices and volume were Malibu, Beverly Hills & Beverly Hills Post Office. Hancock Park boasts exquisite estates that seem like down right bargains for the quality of craftsmanship, amount of land and setting in Los Angeles’ the best neighborhood!
NATIONAL MARKET UPDATE
Freddie Mac’s new quarterly forecast predicts the home purchase market will stay strong through 2021, with sales reaching 6.9 million, up from 6.5 million in 2020. Freddie expects mortgage rates will rise later this year, but only gradually.