While the high and rising prices of most of the houses on the market are keeping the overall number of sales down, the top one percent of the housing market—the highest of the high-end—is seeing a boom in 2014, according to a new report from Redfin. And the national trend is going strong in Los Angeles in particular. From January to April of this year, sales in the top one percent of LA’s market grew by 38.3 percent. (Meanwhile, sales of the rest of the supply have fallen about 12 percent by Redfin’s numbers.) What does the very top of LA’s housing market even look like? Who are these people? For starters, the top one percent of houses here sold for$3.65 million or more.
Buyers are likely paying a monthly mortgage of $14,579 (assuming they have one) and making at least $625,000 a year (assuming a monthly payment that’s 28 percent of gross income, a 20 percent down payment, and current interest rates for a 30-year loan). About 44 percent of one-percent buyers don’t have to bother with loans at all because they buy in cash. (Across the board, about 33 percent of all SoCal sales are all-cash right now. It makes sense that most would be on the high-end.)
There are plenty of neighborhoods in LA where a buyer could spend $3.65 million, but Redfin also crunched the numbers to find the ‘hoods with the highest average sale prices. The top four most expensive “luxury” neighborhoods in the country—beating out areas of San Francisco and Orange County—are below, followed by their average sale prices:
· Beverly Glen: $11.856 million
· Holmby Hills: $9.91 million
· Malibu Road: $9.513 million
· Bel Air: $8.1 million