April 1, 2008

Reduced in Beverly Hills — Maybe Not Far Enough

High-end areas like Beverly Hills have remained relatively untouched by the real estate downturn — so far.  Often, the most desirable areas are last to suffer and first to recover. 

But although single-family homes are continuing to sell in Beverly Hills, that doesn’t mean people are willing to overpay for them.  And this listing, at 201 S. Almont Drive, shows signs of being overpriced.

Sure, this three-bedroom, two-bath, 2,292-square-foot home on a 5,906-square-foot lot has been beautifully remodeled.  But after less than two months on the market, it’s already been reduced $200,000, to $1,899,000. 

And when you compare the prices of comparable homes for sale to homes sold, you notice a price disparity.

For example, the house at 208 S. Wetherly Drive, another 3+2 but with 1,801 square feet, sold in December for $1,450,000.  And the 3+2 at 216 S. Oakhurst Drive (1,745 feet) sold in October for $1,599,000.

The for-sale homes are noticeably more.  There’s a 3/3 at 212 S. Swall Drive for $1,995,000 (purchased in October 2006 for $1,450,000), although it’s been on the market only 12 days.  There’s a 4+3 up the road at 141 S. Swall Drive (purchased in 2002 for $771,000) for the same price.

At some point, home prices in Beverly Hills will probably hit a wall.  Is that starting to happen?  We’ll have to watch and see.