Falling fast: Prices of luxury homes in toniest LA nabes dropped each day on market
In places Bel Air and Holmby Hills, it pays to close the deal in a hurry, according to a report
Luxury homes in some of Los Angeles’ wealthiest communities depreciated dramatically each day they spent on the market in 2017, dropping far faster than other homes in the country. In other words, if you’re selling a luxury house in neighborhoods like Bel Air or Holmby Hills, try to close the deal fast.
The top 10 sales in the tony neighborhoods dropped roughly $44,000 per day on the market, averaging a sales price of around $24.4 million last year. That’s 70 percent of the original asking price after an average of 251 days on the market, according to data collected by the firm Concierge Auctions.
“The data shows that a property either sells very quickly out of the gate for a high percentage of its asking price, or it lingers on the market and sells at a much later date for a much lesser percentage of the original listing price,” Concierge Auctions president Laura Brady told the Wall Street Journal.
For example, homes in San Francisco spent an average of just 55 days on the market and sold for 95.3 percent of their original asking price, a drop of $11,600 per day.
The drop in Bel Air and Holmby Hills was by the far the most significant daily decline of any area the firm studied. Both neighborhoods have some of the highest sales in L.A. and also some of its most ambitious spec projects. That includes Niles’ Niami’s mind-bending $500 million spec home, The One, that’s on the market in Bel Air.
Neighboring Brentwood saw the next highest daily drop — around $25,000 per day during an average of 154 days on the market. Beverly Hills, Malibu, and Orange County all saw significant price drops in homes the longer they remained on the market.
Homes in South Florida markets also saw declines. The top 10 sales in Miami spent the longest average time on the market — 608 days — and dropped $17,600 per day to close at 68.2 percent of their original asking prices. The top 10 sales in Palm Beach spent almost 16 months on the market and sold for around 73 percent of their original asking price, a daily drop of around $22,400. [WSJ] — Dennis Lynch