Coming Soon to Beverly
Hills! 7 Prime Units For Sale
Construction Permits on
Halt! Or... Not?
A Los Angeles County Superior Court ruling has determined that the city of Beverly Hills cannot issue new construction permits due to its non-compliance with state laws mandating the planning of affordable housing. While the ruling allows Beverly Hills to proceed with new residential developments, it restricts the city from issuing permits for residential renovations, commercial projects, or any other construction activities. The advocacy group Californians for Homeownership had filed a lawsuit against Beverly Hills, alleging the city had evaded state housing laws for years. The court order imposes penalties and urges Beverly Hills to adopt a compliant affordable housing plan, with the city expressing intent to appeal while continuing to issue construction permits.
Mansion Tax Shakes Up
The Market
In 2023, Los Angeles experienced a surge in luxury rentals as soaring interest rates and the Mansion Tax (Measure ULA) deterred potential sellers. Celebrities joined the trend, offering their homes for rent, including non-celebrity individuals who also opted for rentals, with agencies like Nourmand & Associates, The Agency, and Douglas Elliman reporting increased lease activity. Despite the complexity of lease agreements, some agents find them lucrative, adapting to the evolving landscape of renting in Los Angeles. Additionally, notable properties, such as Robert Conrad’s former Malibu home (listed by Rochelle Maize), re-entered the real estate market, featuring contemporary design, panoramic ocean views, and luxurious amenities. Visit LuxExpose.com to read more about why more luxury homebuyers in LA are opting for leases over purchases, or RochelleMaize.com to see more of Rochelle’s current luxury listings available for lease.
How Do The Flats
Compare to All of Beverly
Hills or BHPO?
n 2023, new listings in The Flats made up just 6% of the total number of new listings in Beverly Hills. However, Flats sales equaled an incredible 31% of all Beverly Hills sales. To expand upon that, out of 1,166 Beverly Hills listings for single family residences in 2023, just 100 closed sales were made (less than 10%). But out of 70 listings for single family residences in The Flats specifically, 31 sold (nearly 50%!).
“Quite simply, there’s no better place to sell in Beverly Hills than The Flats!”
Interest Rates: Let’s Talk
About Them
Mortgage demand has declined as interest rates surpass the 7% mark. The average contract interest rate for 30- year fixed-rate mortgages has risen to 7.06% from 6.87%. Refinancing applications dropped by 11% compared to the previous week. Surprisingly, the high interest rates haven’t led to a decline in home prices. Typically, increased rates make borrowing less attractive, prompting sellers to reduce prices, but this hasn’t occurred.
Despite the recent increase in mortgage interest rates, there are strategic financial options available for homebuyers and homeowners to navigate these challenges positively.
Prospective buyers can explore the possibility of making a larger down payment, thereby potentially reducing the overall loan amount and monthly payments. Additionally, choosing an adjustable-rate loan could provide initial lower interest rates, offering more flexibility in the short term.
For those considering refinancing, it might be beneficial to monitor the market and seize opportunities to refinance when rates are lower. Being strategic about the timing of refinancing can lead to substantial long-term savings.
While current challenges in the real estate market exist, there are alternative approaches to enhance affordability. For mortgage broker referrals, contact us today.
