Real Estate

Signed Contracts Keep LA’s Luxe Market Steady with $107M in Deals: Eklund Gomes

L.A.'s luxury market sees 18 contracts worth $107M in early July, led by a $9.5M Hermosa Beach home.

By Tal Alexander

7/11, 11:35 EDT

Key Takeaway

  • LA's luxury residential market saw 18 contracts signed totaling $107 million from July 1 to July 7, up from the previous week's 16 contracts.
  • The top single-family home deal was a $9.5 million property at 2240 Hermosa Avenue in Hermosa Beach, originally listed for $10.8 million.
  • Beverly West condo tower saw increased activity with two contracts signed, including unit 6S listed at $5.9 million and unit 6N expected to close just under $5 million.

Summer Surge in L.A.'s Luxury Market

The Los Angeles luxury residential market has defied the typical summer slowdown, with buyers signing 18 contracts totaling approximately $107 million between July 1 and July 7, according to a report from Douglas Elliman's Eklund Gomes team. This marks an increase from the previous week's 16 contracts, although the total volume was slightly down from $113.3 million during the same period last year. The majority of these transactions were single-family homes, with the top contract being a $9.5 million property at 2240 Hermosa Avenue in Hermosa Beach. This activity underscores the resilience and continued demand in L.A.'s high-end real estate sector.

Notable Deals and Market Dynamics

The standout deal of the week was the Hermosa Beach home, originally listed at $10.8 million, now under contract for $9.5 million. The property, represented by Bryn Stroyke of Bayside Real Estate Partners, features four bedrooms and six bathrooms across 4,568 square feet. Another significant transaction was a condo at Beverly West, listed at $5.9 million, which highlights the growing interest in luxury condominiums. The Beverly West tower, known for its high security and boutique nature, saw two contracts signed last week, up from one the previous week. These deals reflect a broader trend of robust activity in L.A.'s luxury market, even as some properties adjust their asking prices to meet market conditions.

Broader Implications for the Luxury Market

The sustained activity in Los Angeles' luxury residential market is indicative of broader trends in high-end real estate. Despite economic uncertainties and fluctuating market conditions, the demand for luxury properties remains strong. This is further evidenced by significant transactions in other parts of the region, such as the $61 million sale of a Malibu spec home by developer Scott Gillen. High-profile sales, including those by notable figures like Oakley founder Jim Jannard and Laurene Powell Jobs, underscore the continued appeal of luxury real estate in Southern California. These transactions highlight the resilience of the market and the ongoing demand for premium properties.

Expert Insights and Market Perspectives

The recent flurry of activity in L.A.'s luxury market can be attributed to several factors. Amir Ensani of Jones Fridman International notes that the boutique nature and high security of properties like Beverly West are significant drivers of sales. Additionally, the strategic pricing adjustments, as seen with the Hermosa Beach property, play a crucial role in closing deals. The luxury market's resilience is also supported by broader economic trends, including low-interest rates and a strong stock market, which provide affluent buyers with the confidence and capital to invest in high-end real estate. These insights suggest that the luxury market will continue to thrive, driven by both local and international demand.

Management Quotes

  • Amir Ensani, Jones Fridman International:

    "The fact that the building is boutique and very high in security is what is really driving sales."