According to the latest Westside Estate Agency analysis of luxury housing data, the already strong luxury home market on the Westside of Los Angeles continues to show strong progress.
The first-quarter report - an analysis of homes priced above $3 million in Beverly Hills, Santa Monica, Pacific Palisades, Malibu and Brentwood -- reveals that homes are selling faster and at higher prices than during the same period last year.
"As more homes are being sold, the gap between list price and sales price is narrowing on the Westside," says Bill Kerbox, a WEA agent based in Malibu who conducted the study. "At a time when supplies are decreasing and prices are inching up, homeowners wishing to 'buy up' to a larger property are at an advantage."
The WEA analysis, which compares luxury data from the first quarter of 2012 to the same period in 2011, finds that:
The average time luxury homes were on the market shrunk by almost a month from 144 days in 2011 to 117 days this year;
The median sales price in the luxury category jumped from $4.25 million in the first quarter of 2011 to $5.1 million this year; and
The gap between median sales price and median listing price narrowed significantly from $1.675 million last year to only $895,000 this year.
"Despite increasing prices, buyers are acting more quickly and making offers that are a lot closer to the asking price," Kerbox said. "This growth in activity and buyer confidence is a significant step in the continued growth of the local luxury marketplace."
"These findings underscore the importance of hiring an agent who has a deep understanding of the neighborhood and local marketplace," added WEA Chairman Stephen Shapiro, who is based in the agency's Beverly Hills office. "It's essential that your agent know the neighborhood and have a track record of meeting client expectations when it comes to pricing and speed of sale."
The WEA survey is based on an analysis of numbers provided by DataQuick and the Multiple Listing Service.