2017 is a Great Time to Consider Investing in Los Angeles

If 2016 was any indication, 2017 is a great time to consider investing in real estate in Los Angeles. The super luxury housing market saw two record-breaking sales hit the $100 million mark. In August, Playboy founder, Hugh Hefner’s mega-mansion was purchased by his neighbor, billionaire investor Daren Metropoulos. In October, Detroit Pistons owner, Tom Gores purchased his own mega-mansion in Holmby Hills.

Despite these monumental sales, it was the transactions in the “affordable luxury” sector that experienced the most substantial changes. Although, according to reports released by the Multiple Listing Service (MLS), the average sale price of single-family homes in the $1 million to $3 million bracket increased by $10,500, the average sale price of homes over $5 million dropped to $8.96 million in November 2016. This is a substantial price drop from the $9.12 million recorded for the same period in 2015. This marked the largest change in all price ranges in Los Angeles.

According to MLS, in the $3 million to $5 million range, the average price of homes sold hovered around the same average price as the recorded median for the same period in 2015. However, homes priced over $5 million dropped an average of almost 2% to $8.96 million. The MLS 2016 market report which was recently released showed that average sales prices in Los Angeles experienced a slight year-over-year drop, but due in large part to an increased volume in sales, totals increased 7% to $19.8 billion.

Los Angeles’s 2016 year-end overview, as analyzed in another prominent market report issued by brokerage firm Douglas Elliman and real estate appraisal and consultant firm Miller Samuel has not yet been released, but according to its third quarter report, single-family homes in Greater Los Angeles reached the average sales price of $2.04 million.

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