The top five submarkets in Los Angeles for luxury home sales, those valued at more than $3 million, accounted for a total of 115 transactions spanning December to February.
This total is noticeable as it occurred during what is historically a slow period for sales. Additionally, the 115 transactions compare to 94 luxury sales that occurred during the same three-month period last year, according to a Sotheby’s International Realty’s Greater Los Angeles market report.
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While a year-over-year increase of 21 sales at first glance doesn’t seem significant, a boost of 21 luxury sales means a minimal increase in Los Angeles’ overall sales volume of $63 million.
“The current Southern California luxury market is in a position of strength as the spring home-buying season gets underway,” said Frank Symons, executive vice president of Sotheby’s Western Region.
Beverly Hills accounted for the most luxury sales, 31, during the three-month period. This sales total equated to a 55 percent year-over-year rise in activity. The submarket also boasted the third highest average sales price, $8 million, from December to February.
Pacific Palisades accounted for slightly fewer closing, 28, but saw a higher year-over-year increase in activity of 65 percent.
Activity remained relatively unchanged in the Sunset Strip-Hollywood Hills West submarket with 22 luxury sales closing. The average sales price in this market was $6.35 million.
Santa Monica contributed the fourth most luxury sales with 19, a 36 percent year-over-year rise. Brentwood was close behind with 15 sales.
Looking only at highest average sales prices for homes sold the top two are
The Bel Air-Holmby Hills and Malibu Beach submarkets are home to the highest average priced luxury sales at $11.2 million and more than $9.1 million, respectively.
Luxury real estate brokerage expansion
Some of the city’s most prominent luxury brokerages are responding to the strength of LA’s luxury market by expanding their presence.
With plans to close $1 billion in luxury sales, Gibson International will introduce at least one new office and continue to grow its network of brokers. Currently the firm has offices in Brentwood, Pacific Palisades, Marina del Rey and Santa Monica.
After justing establishing new offices in downtown and Studio City, John Aaroe Group’s office count will reach double-digits this year, as the opening of a Silver Lake office is likely. The brokerage is also targeting possible offices in various beach communities, along with lower San Marino.
Office and agent growth this year is expected to push the brokerage’s total transaction volume to $2.7 billion.
