Market Conditions in 90210>Question Details

Julianne, Home Buyer in 94303

the average home sale price in 90210 is ~$1.5 million but the avg listing price is over $4 million. Why is this?

Asked by Julianne, 94303 Sat Oct 9, 2010

It doesn't seem realistic that the average home sells for 1/4 or 1/3 of its asking price. Does this statistic mean that higher end homes are not selling, or that more condos and small houses are being sold?

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Answers

14
Averages are such a poor gauge. You have to look at every home individually. You must evaluate the condition and location of each property. Some areas in BH are more desirable than others. 600s of the Flats...to Sunset Blvd...Then slightly past Lexington North of Sunset....Plus, certain pockets of Trousdale...Plus, certain areas of Beverly Hills Post Office. You have to be an expert to know these pockets. Let me know if I can help you in your search.

Roger Perry
Rodeo Realty - Beverly Hills
Fine Estates Division
(310) 600 1553
Web Reference: http://www.RogerPerry.com
1 vote Thank Flag Link Wed Jan 26, 2011
Average home prices includes condos, most of those $1.5 million sales you are probably seeing are mostly likely condos or very small houses. Just a little bit of information, the $5 million plus market has been selling very quickly lately, especially when priced right. The best way to get accurate information is to contact a Realtor that specializes in this area. I can send you both the single family homes and condo market updates, homes that are priced right are now seeing multiple offers in many areas. Feel free to search for properties on my website anytime.

Heather Paul
Coldwell Banker
(424)625-1037
0 votes Thank Flag Link Mon Jan 17, 2011
Paula,

It all depends on the area. Every area has been hit as far as value, from low end home/properties, to high end homes/properties. Some areas in Beverly Hills has been hit more than others. Even though there are buyers buying in Beverly Hills, there are not as many as the ones that are getting the homes in the $400k range and less. So the sellers HAVE to do something to attract the few buyers in those areas, and 9 times out of 10 price is the biggest factor!
0 votes Thank Flag Link Mon Oct 11, 2010
Hello Paula,

Everyone wants to live in Beverly Hills. Depends on the part of BH that gets the higher value. Value in Beverly Hills also includes condos. The average home is not selling for 1.5 in the better parts of BH.

Monique Carrabba
The Carrabba Group
Keller Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Sun Oct 10, 2010
HI Paula,
The higher end is RARELY selling.
It is difficult to get loans on properties in this price range.
Some people have grand illusions that their home is worth more than it is as well.
Some are just doing what comes natural and trying to get as much as they can.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomesrealestate.com
http://www.socalhomesrealestate.com
California Department of Real Estate License # 01312992
0 votes Thank Flag Link Sun Oct 10, 2010
Hi Paula,
The best way to get the market trend info for an area is to work with an agent who has access to more sources then the general public. A good agent will help you get these answers and help you to find the property that works with your developing requirements. Please check out my site you will find more helpful information.

Karen Numme
323.804.2008
Keller Williams Realty
REAL ESTATE re-envisioned
http://www.karennumme.com
Web Reference: http://www.karennumme.com
0 votes Thank Flag Link Sat Oct 9, 2010
Paula, I just did a search of the Multiple Listing service as of the past six months in Beverly Hills Proper, i.e.: the School System, not BHPO and not counting Condominium Sales, here are the actual numbers. (see under my comment). I am just wondering where did you get your information? As well as what was your search parameters. Hope this helps. Should you need a Beverly Hills or neighboring purchase please feel free to contact me directly.

Beverly Hills (area #1 in the MLS)

117 Active Single Family Residences 12 Backup 16 Pending and 97 Sold

A Listed over $60million: 1, B Listed between: $20-$30million 2, C Listed between: $10-$20million 17,

D Listed between: $5-$10million 38, E Listed between: $2-$5 million 22, F Listed under $2million 37

Sold: A = 0, B= 0, C= 4, D=20, E=34, F=39
0 votes Thank Flag Link Sat Oct 9, 2010
A Realtor can provide you the data and help you analyze it. Be very specific with what you are looking for and compares to. A builder can give you a rough idea on the construction costs but it would be current not future costs which are affected by inflation, economy change and the builder's work schedule. The more customized your home is the costlier it will be and harder to estimate. Make sure you have a lot money set aside for surprises than what you would normally budget for. In this market, you are much better off purchasing an existing building, fix it up the way you want it unless you must build something unique. This option is so much less hassle, more predictable costs and less time consuming - isn't what investment all about?
0 votes Thank Flag Link Sat Oct 9, 2010
Most low end homes will sell first, wherever you live. The biggest problems today in financing are with the jumbo loans.....so homes priced in teh upper-end have more trouble getting the financing as well as fewer buyers !
0 votes Thank Flag Link Sat Oct 9, 2010
In most areas across the US the lower priced homes are selling much faster and more often than the higher priced homes. The key thing to remember is that average sale price for an area does not constitute average home value for the area. The same thing goes for average listing price. Many people see the listing prices in the area and for some reason assign the number to average home values, which is not correct.
0 votes Thank Flag Link Sat Oct 9, 2010
Yes! It was the median I was looking at. That solves the problem.

What is the best way to find out about the market price, selling price and average days on the market for homes listed in different price ranges? I can't find this information on trulia. I'm interested in purchasing and developing a lot for future investment purposes. Is there anywhere I can find the average cost of building a home in BH, especially those listed at different price ranges?
0 votes Thank Flag Link Sat Oct 9, 2010
This means that more higher end homes are not selling, or sitting on the market and that more lower end (if you can describe a $1.5M property that way) are selling. Homes are not selling for 1/4 or 1/3 of asking price. The MLS data shows that homes are selling at 92% of asking price, on average in 90210 over the last 6 months.

If you have any further questions, feel free to contact me.

Richard Schulman
#1 Listing and Selling Agent
Keller Williams Westside Realty
310-482-0173
schulmanrd@yahoo.com
http://www.RichardSchulman.com
0 votes Thank Flag Link Sat Oct 9, 2010
Average price is mid point of all price range - low to high. Could you be referring to what we use in real estate as a median which is the most price range purchased at? Make sure you are comparing to the same data for same type of property. Price over the $4m could be the higher end which falls out of the median. As a buyer you should not be too concerned about the asking but the market price - a price a buyer is willing to pay for. Note how and how long the higher end asking price falls into the market price over the length of time a property sits in the market.
0 votes Thank Flag Link Sat Oct 9, 2010
The upper price range homes are sitting longer then lower end homes. This is basically what is happening all over LA. I would be happy to get you more info about market trends. Give me a call at 323.804.2008
Web Reference: http://www.karennumme.com
0 votes Thank Flag Link Sat Oct 9, 2010
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