Home Values Rise in Los Angeles and Beverly Hills Even as Median Prices Fall
Home Values Rise in Los Angeles and Beverly Hills Even as Median Prices Fall | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Recent headlines have caused confusion by reporting a dip in the median asking price for homes compared to last year. As a buyer or seller in markets like Los Angeles and Beverly Hills, it’s easy to assume that home prices are dropping, but the reality is more complex. While median prices may be down, home values are actually continuing to rise. Let’s break down what’s happening in the local market to give you a clear picture.
Smaller Homes Are Dominating the Market
The primary reason for the decline in median price is that smaller, more affordable homes are making up a larger share of the inventory. The median price simply reflects the midpoint of all homes currently for sale, and it’s influenced by the types of homes on the market. For instance, in Beverly Hills and Los Angeles, luxury homes and expansive estates may be less common in listings, bringing the median price down. However, this doesn’t mean that the overall value of homes in these prestigious areas is decreasing.
As Danielle Hale, Chief Economist at Realtor.com, explains, “The share of inventory of smaller and more affordable homes has grown, which helps hold down the median price even as per-square-foot prices grow further.”
Price Per Square Foot Continues to Climb
A better measure of home value in high-end markets like Los Angeles and Beverly Hills is price per square foot. This metric shows what you’re paying for space and is a clearer indicator of property value than the median price. Recent data reveals that price per square foot continues to rise, even as the median asking price shows a slight dip.
For instance, in areas like Beverly Hills and the Los Angeles Westside, smaller homes may be affecting the overall median price, but luxury properties are still seeing strong per-square-foot appreciation. This trend is key for both buyers and sellers to understand, as the true value of homes in these affluent neighborhoods remains on the rise.
Local Market Trends Matter
While national trends can provide a broad view, real estate is highly localized. In exclusive areas like Beverly Hills, Bel Air, and the Westside of Los Angeles, market conditions may vary greatly from the national average. A trusted real estate agent with expertise in luxury properties is essential to help you navigate these nuances. They can offer insights into how local demand, inventory levels, and price trends are shaping the market for high-end homes.
Bottom Line
While headlines about falling median prices might suggest a downturn, the reality in Los Angeles and Beverly Hills is different. The dip in median price reflects the influx of smaller homes on the market, but price per square foot—a true indicator of value—remains strong and continues to rise. If you’re curious about what this means for your luxury property or your plans to buy in the area, let’s connect. I can provide the local expertise you need to make informed real estate decisions.
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