Who’s Buying Luxury Homes in Manhattan Beach?

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Last year the number of homes sold at $1 million and above were up 45% over the 2012 number, and the highest in the state since 2007 according to the Los Angeles Times.*   The highest number of $1 million plus sales were in Manhattan Beach, followed by Hillsborough and La Jolla.  Forgive me, but I can’t resist pointing out that in the $1 million plus price range, Shorewood Realtors handled 29.4% of the transactions-more than double their nearest competitor.  **

If you are wondering who’s buying all those luxury  homes, the California Association of REALTORS just released the results of their Luxury Buyer/Seller Survey, which sheds some light on this growing segment of the market.  For example, the average age of clients in a $1 million plus transaction is 53 with buyers slightly younger at 46 and sellers at 60.  Almost 3/4 were college educated, and almost 1/3 attended graduate school.  The mean income for buyers was $350,000 and for sellers it was $275,000. 92% permanently reside in the U.S. and 5% are international buyers, trend that has been growing.  Not surprising is the fact that only 15% were first time buyers.  Of those who are repeat buyers, 4 out of 5 owned more than one property.  It may surprise you to learn, however, that 48% of the buyers were single, and 24% were married.  79% of luxury buyers planned to use the home as their primary residence, 10% as a vacation home, and 2% were investment properties.

It appears that 2014 sales are off to brisk start although limited by the lack of inventory.  According to CRMLS,  eight sales have closed above $3 million with half of those sales above $5 million.  It hardly seems fair to call all of the sales at or above $1 million luxury home sales since developers are routinely paying that amount to buy lots in the city.  If you will like more details on recent sales or market trends, drop me a line.


*Lauren Beale, Los Angeles Times, January 30, 2014 **RealTrends