The sky seemed to be the only limit for pricing on single-family homes in the L.A. region as the area hit records highs in the past few months. The median price for an L.A. home exceeded the $1-million mark for the first time ever in the first quarter of the year, rising 17.6 percent to $1.04 million year-over-year, and the median price for a luxury home skyrocketed by more than 20 percent, according to a recent report by brokerage Douglas Elliman.
But the soaring market, and the headlines that accompany it, have also given some sellers unrealistic expectations as to the value of their homes, some brokers said. And now reality is bringing asking prices a bit more down to earth, with cuts becoming a relatively common occurrence.
“We can talk about price all day long but the market will bear the price that the market will bear,” said Mary Lee Blaylock, president and CEO of Berkshire Hathaway HomeServices (BHHS) California Properties, speaking in an April interview. “If we’re not cautious, frustration will ensue and that’s not good for anyone.”
Read on for a closer look at the five largest price cuts the L.A. market has seen this year.
- 27724 Pacific Coast Hwy — $5M price cut
A four-bedroom, four-bathroom Malibu waterfront home that came on the market for $30 million in March had its price slashed last month by a whopping $5 million.
The current asking price of $24.99 million equates to $8,377 per square foot, down from $10,053. Donovan Healy of the John Aaroe Group has the listing.
The two-story beach house, which sits on 1.6 acres, has floor-to-ceiling glass and two beach-facing decks. An upper tier of the lot is currently vacant but could be developed into a guesthouse, tennis court and pool, according to the listing.
2. 27 Beverly Park Terrace — $5M price cut
A five-acre estate in the exclusive Beverly Park Terrace enclave of Beverly Hills had its price cut from $35 million to just $30 million this month after just four months on the market.
The new asking price equates to $1,455 a foot, down from $1,698 a foot for the full estate, according to Zillow. Susan Smith of Hilton Hyland has the listing.
The 10-bedroom, 15-bathroom property has a 40-foot-high entryway, a two-story paneled library, a hand-cut mosaic pool and spa, a private tennis court and a three-car garage, according to the listing.
3. 1426 Harridy Drive — $4.5M price cut
A Beverly Hills home first listed for $14.995 million in March had its price dropped to just $10.495 million last month, according to Zillow.
While there’s already a four-bedroom, five-bathroom home on the property, the listing is pitched as a redevelopment opportunity, complete with architectural plans for a new 15,000-square-foot home designed by architecture firm Shubin + Donaldson. The new home would have seven bedrooms and 11 bathrooms.
The site has unobscured ocean, city and canyon views, according to the listing by Coldwell Banker agent Christopher Damon.
The new asking price represents a price per square foot of $10.052, down from $12,474.
4. 1140 Tower Road — $4.125M price cut
A traditional estate in Beverly Hills north of Sunset Boulevard has had its price cut twice since it was listed in March, for a total discount of $4.125 million.
The eight-bedroom, 11-bathroom property was original listed for $34 million and is now available for just $29.875 million. It’s listed by Michael Eisenberg of Keller Williams.
The estate, framed by tall hedges and a double-gated private driveway, is comprised of two standalone homes on almost 1.4 acres, according to the listing. The main home has a motor court, a media room, a temperature-controlled wine room and comes with a pool, a cabana and parking for three cars.
5. 1288 Angelo Drive — $3.95M price cut
A modern Beverly Hills pad designed by famed interiors guru James Magni has had its price cut twice since it was listed last October, for a total discount of $3.95 million.
The current asking price of $15.95 million represents $3,009 per square foot, down from the original price of $3,754 per square foot, according to Zillow.
James Crane of Douglas Elliman has the listing for the three-bedroom, five-bathroom home.