Coming up with average prices for home sales in the Hollywood Riviera and/or any other South Bay city can be challenging when there are many outliers in the data. Removing those outliers is really the only way to come up with a true average.
For instance, one home sold in the Hollywood Riviera this year for over $22 million dollars. It was a very special home sitting on the bluff overlooking Torrance Beach and it was not just one home…it was two homes for the price of one! Talk about throwing off the numbers…not only was this home sold for 14 times the average price, but it was really a comparable in the area for two homes. So, if you are running numbers you must remove this sale from the data to come up with anything truly meaningful.
If the average price is somewhere in the $1,500,000 range, and most of the higher end homes are now selling above the $2 million dollar mark, then really a home that sold for $3,500,000 is also an outlier. Now, it’s nowhere near the $22 million dollar outlier but it’s still out there and can throw off the numbers.
Bottomline….the average price of homes sold in the Hollywood Riviera this year is way up. Our inventory is still very low…there are only 11 single family homes currently for sale. And of those 11 homes, a couple of them are way overpriced and really don’t count if you ask me. If someone grossly overprices their home, it really is not ‘for sale.’ Especially, if that individual won’t consider coming anywhere near its actual market price when an offer is received. So, in fact, in my humble opinion, right now there are really only 8 out of those 11 homes that are ‘really for sale’ and priced in the zone that will garner offers from potential buyers.
There are 13 homes currently in escrow in the Hollywood Riviera. So, as you can see, homes are still selling. Homes that are priced well and in good condition are still selling and often in a multiple offer situation. Buyers are very savvy today and the current market strategy that is working for most sellers is to prepare your home for sale – doing things like painting, de-cluttering, and other similar updates – and pricing the home right at or below its determined market value. It is best to hire a local realtor to help you determine that market value. Local realtors are much more familiar with the comparable properties and will have been inside most of those comps.
Give Kelly & Laura a call today to help you get your home sold this year!