The forecast is in, and for Beverly Hills, the housing market looks promising for 2024. As the choppy real estate trends of 2022 and 2023 begin to fade, and the outlook appears more serene, real estate experts are relatively optimistic that the California housing market of 2024 is poised for a rebound. Both the number of luxury homes for sale and the prices of the homes themselves are expected to rise in the coming months, albeit not to the level of the frenzied pace seen in the early years of the pandemic.
Beverly Hills highlights
Beyond the world-renowned shopping, many of the world's most celebrated restaurants and iconic sites, such as the Beverly Wilshire Hotel, most famous for being the backdrop for the 1990s movie, "Pretty Woman," lies an entire region worthy of further exploration. While the area is well-known for its exquisite architecture and lovely estates, there's also an abundance of equally stunning, natural California beauty in the region.
While residents of Beverly Hills must travel a short distance to view a California sunset directly from the beach, the hills in areas such as the 21-mile-long Mulholland Drive offer breathtaking sunset views all their own. Additionally, the hillside drive offers incredible views of the Los Angeles skyline as well as the nearby Santa Monica Mountains.
Beautiful landscaping is everywhere, as are the magnificent palm trees that seem to line almost every street throughout the area. Located in the heart of the city are The Virginia Robinson Gardens. Built in the early 20th century, the historic mansion, accompanied by six acres, is one of the notable landmarks in the region. It features a lovely array of Italian Renaissance terrace gardens as well as several other venues nurturing native vegetation, and more. For more sensational views, there are a range of hiking and biking trails throughout the nearby hills and the Santa Monica Mountains.
A number of black-tie events are held in Beverly Hills every year. Additionally, the area features a variety of art galleries, with some presenting the contemporary artworks of Andy Warhol and Damien Hirst, and others hosting art from European masters, such as Monet and Renoir.
Beverly Hills market forecast for 2024
The expected moderate rise in home prices and the subsequent decrease in competition from other buyers is good news for those who prefer to take their time before deciding to move forward with an offer on a property. Conversely, investors who were planning to take advantage of the recent slump in sales to place offers on even slightly discounted homes will be disappointed. If investors want to jump into the market, they should do so before sellers begin to command increasingly higher offers on their upscale properties.
Although most parties pay cash when they purchase an estate in Beverly Hills, they may still want to pay attention to fluctuations in interest rates, primarily because financing rates can affect levels of supply and demand in the housing sector. As mortgage rates rise, demand for properties tends to wane across the board. When interest rates remain steady or decline, the number of closings tends to pick up, along with an increase in buyers trying to reach upward to obtain a luxury property, which can affect the housing supply.
Housing values
According to Bankrate.com, Beverly Hills continues to rank in the top 25 in the category of the highest number of high-priced homes in the United States. For a home in Beverly Hills, the current median list price of $9.21 million is lower than the year's high of almost $11.4 million. However, as mentioned, the rest of the year and into 2024 are looking more positive in terms of prices for current owners.
According to C.A.R., the California Association of Realtors, while the supply of homes in 2024 is expected to improve somewhat, inventory is still projected to remain lower than in years past. For sellers, this means home prices will likely see a turnaround from the slump they experienced in 2023.
Housing demand
Even though mortgage rates are projected to moderate in 2024, demand and supply will likely become a bigger factor for the area's top high-end properties in the coming year. As mentioned, in a singular neighborhood such as Beverly Hills, most buyers simply pay cash for their properties. Thus, the rise and fall in mortgage rates tend to be less of a direct factor in the area's housing market.
Conversely, home inventory levels, which represent the desires of owners to put their properties on the market, will remain a direct factor influencing both buyers and sellers, even in opulent Beverly Hills. So how do buyers benefit from homeowners becoming motivated to sell? From a buyer's perspective, their preference is for a larger selection of homes from which to choose.
What would motivate some residents in Beverly Hills to list their homes? Ideally, sellers would like to receive offers that are substantially larger than their initial investment. While no one is predicting a return to the feverish pace of home sales the entire country experienced during the first years of the pandemic, a notable moderation in borrowing costs is likely to generate increased interest in buying. As buyers become more interested in purchasing, home prices tend to increase. In turn, owners become more motivated to sell.
What would motivate some residents in Beverly Hills to list their homes? Ideally, sellers would like to receive offers that are substantially larger than their initial investment. While no one is predicting a return to the feverish pace of home sales the entire country experienced during the first years of the pandemic, a notable moderation in borrowing costs is likely to generate increased interest in buying. As buyers become more interested in purchasing, home prices tend to increase. In turn, owners become more motivated to sell.
Moderation is the key
According to C.A.R., the real estate market in 2024 is expected to moderate, namely due to lower interest rates. In Beverly Hills, the moderating effect of lower financing costs could indirectly benefit both buyers and sellers. As 2024 progresses, if list prices can improve because of the moderating effects of lower interest rates, current owners are likely to become more interested in jumping into the market.
Although most buyers prefer to pay less for a residence than an unrealistically high figure, they can still benefit from a reasonable increase in listing prices. After all, without owners willing to put their properties up for sale, the housing inventory remains low, and the ability to join a coveted neighborhood is hampered.
Work with the foremost real estate experts in Beverly Hills
Jordan Pollack of LA Luxuries represents one of the finest real estate companies in Beverly Hills. Working only with top-tier properties, Jordan has years of experience managing the buying and selling of some of the most beautiful estates in the world.
When the world's top executives, celebrities, royal families, and the quite wealthy want to invest in Beverly Hills real estate, they turn to Jordan Pollack. At the core of his stellar reputation is his dedication to honorable principles, including integrity, honesty, hard work, and, perhaps most importantly, confidentiality. These time-honored values have allowed Jordan to rise to the pinnacle of the Beverly Hills real estate industry in its role of providing premier service to clients.
To make an appointment with Jordan, please visit the LA Luxuries website.
To make an appointment with Jordan, please visit the LA Luxuries website.
