The New Year opened with a roar, not only on the west coast, but across the country. California was snarled in the “bomb cyclone”- a virtual river of jet stream current that dumped floods of water across the state for almost 9 days. From drought to flood, it affected some of the typical merriment that goes with the season. Airlines are still reeling from a record cancellation of travelers' flights not only due to national weather storms, but airline technical difficulties. Is this a forecast of the real estate year ahead?

Our real estate news is better than the unusual weather here in LA. Residential buyers who have anticipated a big drop in home prices are disappointed because even though LA County closed prices are down 7% for the year, they are still higher than this time last year. And the 7% price decline has not lowered the cost of homeownership because of the rise in interest rates. AND, to make it even more challenging to purchase a dream home, 50% less new listings are arriving on the market this time compared to last year which tightens inventory levels even further. All these factors combined keep prices higher than hungry buyers have hoped but have extended some slight remaining “good times” for serious home sellers.

What about the top ½ of the 1 Percent? There has been a rush of ultraluxury estates selling in California and across the USA. 44 homes sold at $50M or higher in 2022 – almost twice as many as pre-pandemic 2019. There were 7 sales at $100M or more this past year. Quite frankly, ultraluxury is separated from reality and doesn’t reflect the normal housing market. From my recent experience, the battleground appears to be in LA midluxury, $10-25M.

The complexity of buying or selling a home right now requires constant update regarding trends, newly adopted tax laws, crime statistics, school boundaries and a myriad of other influences on the value or use of one’s home. An experienced realtor lives with a daily input in all these categories, and I believe in the undeniable and unmatched support a good agent can provide to any homeowner. My team dedicates itself to the client’s benefit which is how we measure success. If we can answer any question or help with any challenge, please contact me. On this river of change, we want to be your lifeboat.

-Ernie