The annual sales volume of homes in assorted Southern California high-priced communities has been charted by real estate blog ‘Manhattan Beach Confidential’ based on data from MDA DataQuick. The sales volumes of luxury homes in cities like Manhattan Beach and Beverly Hills have not risen and fallen independently of one another, but have instead dropped every year at approximately the same rate across all charted areas since 2002.
first tuesday take: This luxury market analysis demonstrates that wealthy homebuyers are no fools with their money. As prices rocketed upward in the 2000s, the wealthy refused to pay too much for conspicuous consumption in their homes, and the volume of sales moved downward across the board. The value drop in luxury areas, a drop which the prices have only begun to reflect, is not likely to stop this six-year downward trend in sales volume, especially as taxes rise on the wealthy, their total income drops, and conserving capital becomes stylish again. A word of advice for southern California brokers: do your deals east of HWY 5.
Re: “Local luxury markets down, too”, from the Manhattan Beach Confidential