While owner-occupied real estate is not commonly regarded as a largely profitable investment, the world’s uber-wealthy hold nearly $3 trillion in luxury residences across the lobe. A recent report released by ‘Wealth-X,’ concluded that out of 211,275 ultra-high net worth individuals (those with $30M or more in assets), 79% own two or more personal residences.
Researchers found that the ultra-wealthy favored the United States when looking for second homes. By preference/number of homes, New York came in first with Los Angeles second. There are several factors that influence these luxury real estate collectors: concentrated business environment, proximity to the world’s largest markets, English language proficiency, high living standards, strong economic history and infrastructure, and last but not least, a stable real estate market.
We have certainly seen a strong resurgence in buyer/seller activity in Los Angeles during the beginning of the year. Historically Q1 starts out slow and ramps up to a busy Q2 during the spring season. However, real estate professionals and researchers alike have noticed that for the last 2 years in Los Angeles, Q1 has been our busiest quarter. With interest rates dips in the last few months, the buyer pool is growing larger and larger and many sellers are finding themselves swimming in 20-30 offers.