Known throughout households across the U.S., Beverly Hills is a well-known city surrounded by Los Angeles and West Hollywood and home to some of the world’s most famous film stars and other celebrities. As part of Los Angeles County, Beverly Hills is a small city, only inhabiting a radius of 5.7 square miles with a population of 35,000. However, the city’s larger-than-life reputation precedes its actual size, and there is no doubt that Beverly Hills real estate is an ever-growing segment of the Los Angeles area market.
It’s also important to keep in mind that the Beverly Hills housing market has been on the upswing for the last 10 years. This is also reflected in the area’s rental homes and properties. If we look at the trends for rental rates in Beverly Hills, monthly rent and lease prices have increased from an average of $8.3K to nearly $11.7K over the past eight years from 2011 to 2018. Hence, it can be noted that the rental costs of different types of Beverly Hills properties have increased by around 41% during this time period. This averages to an overall 6% increase over these last eight years. Let’s have a look at how these metrics correlate to real estate prices for buyers and sellers in the Beverly Hills market.
Beverly Hills Real Estate Market 2019 Insight And Statistics
The median price of real estate in Beverly Hills
is around $3.54 million. In real terms, the prices of real estate in this city have gone up by around 1.5% compared to 2018. This consistent growth is expected to continue and according to experts. By the end of 2019, they project that the Beverly Hills real estate market will most certainly grow another 1.2%. It is also quite obvious that the median price per square foot in Beverly Hills will also increase, accordingly. As of 2019, the median price per square foot for Beverly Hills homes and apartments is $1,584. In fact, this is a bit higher than the median price per square foot in Los Angeles, Anaheim, and Long Beach combined. The price per square foot in these areas averages at $434 per square foot--just to breakdown the obvious price differences among the unique Beverly Hills market and the rest of L.A. County.
How is the Beverly Hills Housing Market Trends?
- Median List Price$3.28M
- Median List $/Sq Ft$1.06K
- Median Sale Price$2.39M
- Median Rent per Month$11,913
Beverly Hills Real Estate Market Trends - Forecast 2019
Some Other Factors Impacting Current + Future Beverly Hills Real Estate Prices
As is the case with many other real estate markets in Los Angeles and surrounding areas, foreclosures play a big role. It certainly will impact home values, not only in 2019 but also over the next several years. Keep in mind that the foreclosure rate in Beverly Hills is virtually zero per 10,000. This compares quite favorably with Los Angeles, where the foreclosure rate is around 0.4 per 10,000. The figure of 0.0 in Beverly Hills is also much lower than the national average at 0.2. When there are so few foreclosures, this will most certainly impact the local Beverly Hills housing market positively--along with surrounding areas.
The Role Of Mortgage Delinquency
We all know that in spite of the best efforts, many borrowers fall behind their repayment schedules as far as their mortgage is concerned. This leads to the account of the borrower becoming delinquent and remains that way until repayments are regularized and brought up to date. Therefore, tracking the average rate of mortgage delinquencies in a given area serves as a good way to predict and have a look at the expected growth of real estate in numbers and also value.
Mortgage delinquency is the first step towards a possible foreclosure when an account slips into a stressed asset category. It’s beneficial to have a look at mortgage delinquency rates and extrapolate some data. This will give some reasonably fair idea as to where the Beverly Hills housing market is headed. As of 2019, the foreclosure delinquency of homes, apartments and other properties in Beverly Hills is around 0.3%. This again compares extremely well to the national’s average of 1.1%.
The Impact Of The 2008 Housing Crisis
Also keep in mind that the home values across the U.S. have fallen by over 20% since 2007. This is due to the national housing crisis of 2008, which created a tsunami of mortgage delinquencies. The years following 2008 also saw a huge rise in the number of foreclosure. The impact of the housing market’s collapse left its impact until late 2011. Even today, it would not be an exaggeration to note that there are many homeowners who are still affected by the 2008 economic downturn. In other words, these homeowners still owe much more than what their home is worth.
How Has The 2008 Housing Crisis Impacted Beverly Hills?
When the housing crisis of 2008 hit the nation, it also affected even a wealthy area such as Beverly Hills. However, the latest delinquent mortgages in Beverly Hills are around 1.6%. This is much lower than the surrounding Los Angeles, Anaheim, and Long Beach areas. Hence, it’s clear from analyzing foreclosure numbers and mortgage delinquency numbers that the Beverly Hills area is a market optimized for real estate growth and success. Because of this, the city’s housing market forecast remains favorable. Real estate prices will continue to grow in the next four or five years and perhaps over the next decade in Beverly Hills. Hence, if you are planning to invest in real estate in Beverly Hills, now is a good time to buy since the value of property is projected to increase in the coming years.
What Do Current Beverly Hills Housing Trends Look Like?
The best way to predict trends for the next few years or perhaps for the next few decades is to have a look at past and current investment performances in the Beverly Hills areas. Hence, using hard data is the best way to predict the trend of real estate prices in Beverly Hills. We need to understand that Beverly Hills is home to some of the most expensive luxury markets in the country as well.
Beverly Hills Condos Market Trends
Townhomes and Condos for Sale in Beverly Hills, CA have a median listing price of $4.1M and a price per Seq Ft of $1,075. There are 47 active condos for sale in Beverly Hills, CA, which spend an average of Sixty days on the market.
Beverly Hills Home Prices and Real Estate Appreciation
Currently, there are 274 listings as per May 2019 in Beverly Hills, CA with an estimated median list price of $3.28M. Get started by exploring all property types in Beverly Hills.
Transportation in Beverly Hills, CA
Seek Help From A Local Beverly Hills Realtor
If you are keen on understanding more about the possible trends in Beverly Hills Real Estate prices, then getting in touch with a local realtor is the best way to receive in-depth knowledge on the housing market. However, rather than going in for general data or estimated figures, it would be better to focus on Fixer Markets, Single Family Homes, Luxury Condominiums and other real estate projects. Let us see how current and future trends look in these segments.
Number Of Homes For Sale In Beverly Hills
In Beverly Hills, the number of homes for sale over the past three years of 2016, 2017 and 2018 provide a good indicator of local housing demand. The numbers have steadily dropped from 18,523 in 2016 to 16,842 in 2017 to 14,195 in 2018. Hence, there are less homes available for sale, making Beverly Hills a competitive seller’s market.
As for closed sales, the number in 2016 was 4,567. It went slightly up to 4,724 in 2017 and has marginally fallen to around 4,287. Hence, the closed sale figures have decreased slightly but not dramatically. If we extrapolate this figure and try to plot a graph for the next 10 years, we can expect a compounded growth rate of around 4 to 5%.
Best Neighborhoods in Beverly Hills, CA for Real Estate Investment
- NeighborhoodMedian Sales Price
- Ladera Heights$1.2M
- Culver City$980K
- NeighborhoodMedian Sales Price
- View Park-Windsor Hills$776K
- West Hollywood$732K
- NeighborhoodMedian Sales Price
- Los Angeles$630K
Los Angeles County Vs. Beverly Hills
Although the average price of real estate in Los Angeles and Beverly Hills is vastly different, let us see how it looks over a three year period from 2016 to 2018. As far as Los Angeles is concerned, the average price of real estate was around $761,476 in 2016 and it moved to $816,654 in 2017 and settled at $849,393 in 2018. Let us now compare this with Beverly Hills. It was $2,174,050 in 2016, $,1,844,562 in 2017 and has further slid down to $995,979 in 2018.
There is no doubt that the numbers tell different stories. On the one hand there are less foreclosures (almost nil), much lower mortgage delinquencies, and also a steady rise in the sale-closed properties. The number of properties available for sale in Beverly Hills has also slightly decreased. In this situation, it’s difficult to explain why the average price of real estate properties in Beverly Hills has gone down over the past three years. Perhaps one reason could be due to increased focus in Los Angeles as a potential investing destination for many luxury home buyers.
Your Go-To Beverly Hills Real Estate Professional
Do you have any additional questions regarding current and future trends for the Beverly Hills housing market? Contact Casey Gordon, your premier real estate professional for luxury real estate in Ventura and Los Angeles County! For insight or to get started on the search for your Southern California dream home call our team directly at (805) 750-9804 or (818) 794-6086!