The New Year opens up with the busiest January on our books in recent memory, at least in a decade. The real estate market news outlets are unanimous in their announcement of a
softening Seller’s market in the luxury price sector found in high value neighborhoods such as Bel Air, Sunset Strip, Beverly Hills and Brentwood.
At the same time,
2018 logged the highest recorded sales prices in most of those same neighborhoods and certainly Malibu – which sadly was hit with tragic loss due to the fire sustained in November. A sale on Dec 28
th in Mt. Olympus ( Laurel Canyon area) closed at an astounding $29,500,000 for a
tear down property on 4+ acres overlooking the city.
How can these opposing statistics be accurate at the same time ---
softening prices and record high prices
? Historically tracking previous real estate cycles, these are signals of a
transitioning marketplace, moving from favoring Sellers to benefitting Buyers at the negotiation table. What I believe we will experience in the 1
st quarter of 2019 will be a good opportunity for both camps. Sellers will benefit from the recent high prices on record, while Buyers can benefit from the added negotiability that luxury homes are now experiencing. Everyone should feel good during this timeframe,
if they monitor their local market carefully. Sellers should price attractively to connect with
informed Buyers, and Buyers should not wait too long until the best inventory disappears and they’re left with second best in the 2
nd and 3
rd quarters of 2019.
That is my prediction :
the best inventory will appear now through the Spring season. Then, the challenge begins as to who can claim the Upper Hand in the market of midyear. My professional advice is --
Do Not Wait. If you’re a Buyer, capture in the next few months, knowing you’ve selected well. If you’re a Seller, sell now. Prices do not remain at the top forever. Either way, I’m here for you whatever you need!