April 8, 2008 3:39PM

Luxury Market: Real or Not?

By Cheryl Casone

We had a guest on today that really got the panel laughing, but it was certainly a debate I want to hear from you on. Louise Pennell, our Los Angeles reporter, interviewed a luxury home broker in Pacific Palisades. The homes there obviously are a million and more. He said business is great! Just GREAT. (Think Tony the Tiger when you read this.)

He said there are tons of buyers, mostly local residents, and that in some spots, sales are higher by double digits. Average price was 2.1 Million dollars, and many are more like 5 million and up. The guest said it’s a great chance to buy if they want to spend 2.1 million, and want to go the traditional financing route. That means interest rates are not a worry, and the down payment not a problem. Lots of these buyers it turns out pays cash.

But the guest, Stephen Shapiro, was saying as he walked through a home he was selling, that inventory is low. One thing in Pacific Palisades, prices there up more than 20 percent! The panelists though were making fun of him, saying he was not the guy to ask about a pop in the luxury home market. Adam Lashinsky is predicting that the luxury market is going to be hit. What do you guys think?

2 Responses to “Luxury Market: Real or Not?”

Comment by Cal

April 11th, 2008 at 3:15 pm

This Shapiro is merely shilling his own goods. Zero credibility. He was laughed at and should have been laughed at. Why didn’t the reporter show real sales figures for Pacific Palisades rather than let Shapiro spout bunk?

The only bigger dunderhead is that Tom Adkins fellow.
Comment by Tom Richardson

April 15th, 2008 at 4:05 pm

It appears to me that this is entirely a supply situation. There is a very high end golf club development in Scottsdale with 40 homes for sale and the average price looks to be 2.5 mil. That volume alone has spooked what buyers there are and there have been only one or two sales in the past year. On the other hand at the ski area where I live there is almost zero supply and frustrated buyers who can’t get in. Here the low supply has made the potential buyers want in even more. Talk about human nature. If you can’t have something you want it more and if you can easily buy something you want it less.