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Trends of 2014: The Luxury Market Continued to Rise
Jan 5 2015 6:31PM Posted by Partners Trust, Jan 5 2015 6:31PM
 

Trends of 2014: Luxury Real Estate Heats Up
By Partners Trust 12/27/2014

Overall real estate prices started to stabilize in 2014. Prices in the L.A. area continued to rise but mostly by smaller margins than they had in 2013. The volume of sales both nationwide and in Los Angeles have mostly trailed 2013. However in the luxury market, we saw both sales and prices continue to escalate.

How do we know luxury real estate was hot in 2014? Partly because the data proves it and partly because the L.A. Times kept writing about it. A brief review:

In January, Lauren Beale reported on DataQuick numbers showing that the number of houses sold in 2013 at $1 million and above statewide jumped to a six-year high.

At the National Association of Real Estate Editors conference in June, real estate brokers from around the country discussed the new definition of luxury. On a panel at the conference, Nick Segal told the audience that in Los Angeles, the luxury market begins at about $4 million and up – twice the amount he would have quoted eight years ago.

At the end of July, the L.A. Times reported on CoreLogic DataQuick information that showed sales of homes for $1 million or more hit a seven-year high in California in the second quarter and  sales of $2-million-plus houses hit an all-time record. Reporter Tim Logan interviewed Nick Segal who said in the article: “If you can buy one, you’re going to buy it. Money’s cheap and it’s a solid market. All these factors are playing into demand.”

In November, Tim Logan took another look at the data and found that luxury home sales in Southern California had hit new heights. The number of homes bought for $2 million or more was the highest on record and sales over $10 million were on track to double their number from the heights of the housing bubble. Logan spoke with Cindy Ambuehl, Estates Director for Partners Trust, who confirmed that “the luxury market has been completely on fire.”

Final data should be out by the end of January and we will be able to fully chronicle the impact of luxury home sales in 2014. A ccombination of previous reporting and anecdotal evidence from our own Associates, who are continuing to transact luxury properties as the year draws to a close, indicates that 2014 may have been one of the biggest years for luxury real estate in Los Angeles.

 
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