Tuesday, November 15, 2011

Despite Foul Economy, Los Angeles High-End Real Estate Retains Value and Surpasses Returns of S & P 500

Beverly Hills Homes (Green) Tripled in Value in 15 Years

In a gilded era, it may come as no surprise that homes in the best Los Angeles neighborhoods have retained their value better than other property types -- and even the stock market.

The median price in Beverly Hills ($2,850,000 year-to-date in 2011) is down considerably from the $3,500,000 high set in 2008, but still stands above 2005 levels.

Similarly, the 2011 median price in the Pacific Palisades ($1,650,000) is a big step down from the $2,225,000 set in 2008, but nevertheless is on par with 2004 levels.

Some property types have suffered a far worse fateWest Hollywood condos are now back to 2000 levels.

Some investments have also fared much worse.  Consider that the S & P 500 is no higher than it was in 1998!

Real estate in prime Los Angeles neighborhoods is proving to be more "blue chip" than blue chips.