Wealthy Buyers are Flocking to Oceanfront Properties During the Pandemic
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With interest rates hitting historic lows, buyers with plenty of cash on hand are still hunting for deals. Although sales on the lower end of the market have all but seized up, the pandemic (and the new showing restrictions that have resulted from it) has done little to slow the Southern California luxury market. The past months have presented a unique opportunity to land a trophy homes that wouldn’t otherwise be available. There are certain homes in Southern California. that we will never see on the market, but recessions have brought and keeps bringing motivated sellers out of the woodwork. Although inventory is down, buyers trying to take advantage of the market to snatch a trophy home have plenty of options. Over forty-five properties were listed for $30 million or more in L.A and Orange Counties, according to Redfin. Those include Metro Networks founder David Saperstein’s impressive Malibu mansion on the market for $115 million, as well as a dazzling oceanfront home owned by billionaire philanthropist Eli Broad up for grabs at $75 million. Listing agents don’t seem to be shying away either. Twelve of those 45 properties have hit the market since the beginning of March, when concerns over the pandemic began to swell. While interest rates are pushing sales through, banks are taking longer to get loans done, but they still seem to be getting done! According. To luxury. Real estate agents, the wealthy are receiving loans much more quickly than the average homeowner because the private banks they work with give higher priority to those borrowing $10 million or more.
According to Real Estate Journal, Covid-19 drives ultra-rich to buy properties. Some of the nation’s wealthiest ZIP codes has become even more wealthy.
In early March, when it became clear that we were going to have to either shelter in place or else get where we were going ASAP, those city-dwellers who could afford the privilege of relocating took stock of their options. They would, after all, be paying for two places if they were to rent a vacation home. In the beginning, most stayed put, nervously analyzing the pros and cons. But as the pandemic wore on, short-term rentals in low-density areas within a few hours of city centers started going through the roof.
The U.S has averaged more than 5 million residential sales each of the last five years and is on pace to record 5.52 million sales this year, according to the National Association of Realtors. Even if home sales go down and inventory goes up, it wouldn’t cause a large correction, experts said.
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