Dissecting the Beverly Hills Real Estate Market
Last month we took a broad, panoramic view of the Greater Los Angeles, Beverley Hills, and Mar Vista markets. We observed that some places were heavily skewed toward sellers and some areas were actually becoming more buyer-friendly. In general, we saw that buyer demand had waned, home values had come down somewhat, and inventory was up. This month, I want to shine a spotlight on the Beverley Hills market exclusively. Although it is a relatively small city (just over 30,000 people), it is an extremely diverse area consisting of five zip codes and a number of different neighborhoods. Altos Market Research breaks the Beverly Hills Market into four median price segments:
01 Top: $27M
02 Upper: $13M
03 Lower: $7M
04 Bottom: $3M
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Sellers Still Have an Advantage
(But the Gap Is Closing)
As of this writing, the median list price for Beverly Hills, CA is $9,797,500—which is a 14% drop since June 24, 2022—with the Altos Market Action Index (MAI) hovering around 28. However, in early June the MAI was at 33, favoring a “Slight Seller’s Advantage”. Inventory has held steady around 176. While high mortgage rates (now hovering in the high 6s) are still a primary concern for many buyers, Beverly Hills buyers in an all-cash position are in the driver’s seat and have leverage with sellers.
Comparison of Rate of Sales vs Inventory
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Beverly Hills Real-Time Market Profile
According to Altos Market Research, all key indicators (below) for Beverly Hills are trending to favor buyers over sellers.
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Beverly Hills Market by Segment
As I have stated previously, every neighborhood in Greater Los Angeles is behaving differently. Forget consistency—it doesn’t exist. While most “Top” segments in Los Angeles seem to be trending down deeper into a buyer’s market, Beverly Hills homes seemed to make a turnaround in July when the MAI was at 23, to where it is now at 25. However, the lower three segments have been taking a nosedive since mid-June. I would expect that trend to continue for the foreseeable future. Significantly, all three of these segments are above the 30 MAI threshold making them good for sellers. Buyers, on the other hand, need to be patient and strike when the opportunity arises.
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KEY FACT
All segments are taking longer to sell
which places Buyers in a stronger position.
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Proceed with Caution
(As Well as a Knowledgeable Broker)
Now more than ever it is critical to enlist the help of a qualified broker to ensure that you understand the shifting market dynamics—to avoid pitfalls and take advantage of opportunities. I am happy to speak with anyone in the Beverley Hills market to explore these market segments further, or to see how your home is positioned within these micro markets. Also, contact me for a deeper dive into any particular Greater Los Angeles neighborhood and how that affects you as a buyer or seller. In general, if you are a seller, act immediately. Don’t delay because the market is finally shifting more and more to encourage buyers. As for buyers, as inventory and “deals” are beginning to appear, make sure you are doing your due diligence and have your financials in order. No one knows exactly where the rates will be in 2023, but if you are an all-cash buyer, you have a tangible advantage. The key is realizing that each market segment behaves differently and depending on your goals, knowledge is the best weapon you have.