Foreign Buyers Help California Hit Record $1Million-Plus Sales

Pier-pic-CaliforniaLos Angeles is the number one target for overseas buyers in the US and record numbers of prime US$1million-plus homes are being sold in California.

Los Angeles is the top destination for US foreign property buyers who are snapping up prime US$1million homes, according the latest figures.

Sales of prime property priced at more than US$1million in California hit a seven-year high from April-June at 12,826, which is up 9% from the 11,758 of a year ago and 60% up from the first quarter, according to  CoreLogic DataQuick.

Four record totals for the period were included among the figures:

  • 265 homes sold for more than US$5million last quarter
  • 213 homes sold for US$4-$5million
  • 469 homes sold for US$3-$4million
  • 1,595 homes sold for US$2-$3million.

Manhattan Beach had the most US$1million sales. Rising prices particularly in South California meant that homes on the market for around US$900,000 a year ago, were now fetching US$1million, with foreign interest also helping to push up prices, says CoreLogic DataQuick Analyst Andrew LePage.

“Luxury-home buyers have substantial assets, and they’re constantly evaluating where to park those assets. While we can only speculate, it seems self-evident that luxury home buyers have substantial assets, and they’re constantly evaluating where to park those assets. Right now it’s interesting that there appears to be enough inventory to meet the demand for luxury homes. That’s not always the case in many mid-priced and lower-cost housing markets, where demand continues to outweigh supply.”

An unnamed overseas buyer bought the most expensive property, a US$45million 11,637 square foot, four-bedroom six-bathroom mansion sold in May, which was bought in cash as a holiday property, say agents.

Read the rest of the story at OPP Connect.