While our summers are always cooler than the rest of the nation, October predictably opened with our annual LA heat wave. Soon we will enter the best seasonal weather in the States which propels our real estate market values and tourism from November to May.

My Real Estate report is not as hot as our current weather but I wish to be as optimistic as possible. With continued higher interest rates and the unfavorable Mansion Tax for homes at $5M and above, our market is a sailing vessel adrift on waters without wind. Fortunately, some of the Entertainment Industry strikes have ended in resolution and with some building back, our local luxury market should receive some relief. (No one in their right mind in entertainment will be found buying an expensive home while their colleagues are striking to save their jobs and income). Now they can.

A realtor friend of mine has over 90 listings. As indication of the slowness of our luxury market, this past weekend he had only one showing appt scheduled out of 90 properties. This is as challenging as we’ve seen since 2009 but it won’t last forever, it never does.

There are upsides for both Buyers & Sellers amid this news ---- Sellers have less competition among the inventory with the lowest availability in decades. Being on the market makes sense if you’re serious to sell. Buyers can negotiate better purchase terms than normal due to this market atmosphere. Be aware that prices have not sloped downward - but Sellers are willing to negotiate in good faith. 37.5% less contracts opened in Sept ‘23 compared to Sept ’22.

We are very proud to be representing the most unique new construction home on the West Coast just north of La Jolla in San Diego County. It took 18 years from design to completion and could never be built again due to changed building codes. We love its address – Neptune. We have other Ocean view homes and a Brentwood private sanctuary plus a mountaintop aerie where celebrities have lived on the highest point in the Hollywood Hills.

It's a wonderful time to be in this business because we’re building relationships that will linger, nothing swift and forgettable this year compared to 2021. And for us, we prefer getting to know our clients and proving our dedication for their success. Happy Halloween!

-Ernie