The heat of the summer sun has been pounding on the Santa Monica area. But so has been the scorching hot sale for luxury houses which has doubled over the summer as well.
LA Curbed reports that Los Angeles areas have been experiencing a steady rise in the prices of single-family houses most especially in the Santa Monica Areas. Data taken from the Sotheby's International Realty update show the sales closed from the month of May to July. Santa Monica area closed a total of 31 transactions for a period of 3 months. What is even more surprising is the fact that the houses valued more than $3 million showing a 107% increase in sales rate compared to 2014 of the same period the year prior. Previous year showed only 15 houses sold on 2014 while this year gave 31 closed deals. Beverly Hills came in second with 73%. the figures may be higher compared to Santa Monica with 38 closed deals versus the previous year of 22 units sold.
The data was in comparison to the top 33 markets on closed sales for luxury single-family houses. Sotheby's explains that the reason for such an increase is cited on the "relaxing beach culture" and the proposed expansion of the Expo line.
LA times quotes real estate agent for Partners Trust in Brentwood, Cindy Ambuehl, describing the high end market as "completely on fire." Despite admitting on the fact that the economy has been experiencing a housing bubble, overseas investment, a stable stock market and low interest rates are the reasons for increase in sales on the luxury department.
Corelogic DataQuick second quarter data shows that 1,436 homes valued at $2 million or more. A senior economist for the California Association of Realtors, Selma Hepp, says that the two real estate sectors are experiencing totally different scenarios. The high end market is fast paced while the others are stagnant if not snail like.
With the summer in Santa Monica heating up the sales are in line when it comes to closing deals for high end houses. The sales have doubled and high end real estate companies have pointed out the strong stock market and well traveled clients from across the world.
