With top-rated schools, an ideal location, homes tucked away into the hills facing the Pacific Ocean, and an air of exclusivity, Pacific Palisades real estate boasts a competitive market for most buyers to break into, regardless of the size of their checkbooks. The inventory is simply not there, which gives sellers a distinct advantage over buyers, even as the rest of the country seems to be experiencing a shift in the other direction.
Whether you’re an investor, buyer, or seller looking to enter the Palisades housing market, you’ll want to be up-to-date on its trends and conditions to navigate with confidence.
Palisades housing market forecast 2023
Of course, no one can tell the future, but so far, the real estate market in Los Angeles continues to see a slight rise in listing home prices
and only a very small rise in median days on the market, and of course, the Palisades neighborhood will be no exception to that rule. With its reputation as one of the most sought-after regions in which to live, it will only exemplify and amplify what is happening in greater L.A. Furthermore, that trend does not seem to be going anywhere any time soon.
Home values boast a slight increase
While the rest of the country is witnessing a slowing down of home prices, Los Angeles saw a 0.8% month-to-month increase
in May compared to April 2023.
Volatile interest rates not affecting Palisades
Generally, when we talk about rising or dropping interest rates at the federal level, we also talk about the coinciding sale prices of homes. As interest rates rise, the price of houses goes down, and the time it takes to sell them increases. The converse is also true. This tradition has held for most of the U.S. but not in Los Angeles. The housing market here has held strong despite recent Fed hikes, and whether the Federal Reserve will hike rates again
or take the expected pause amid a changing economy, it does not look like the Palisades real estate market will be too terribly affected.
Investing indicators likely to favor landlords
Palisades is home to an incredible range of amenities. Its centralized location makes it an ideal destination for families, entrepreneurs, business professionals, and retirees alike. Many are interested in living in the area, but with home prices trending high, buyers may turn to rentals. Multi-family complexes, like apartment buildings or condominiums, may also be well worth the investment.
Positive net population migration
In general, more people are leaving
California, and even Los Angeles, than coming in. However, the Pacific Palisades exists in a space of its own, as this neighborhood is one people are desperate to enter. While some Californians may be leaving the state to be near family or pursue careers in other states, others are not going anywhere, and they are seeking neighborhoods like the Palisades for reasons of exclusivity and a bit of an escape from big city L.A.
Los Angeles County housing market trends 2023
Los Angeles County is made up of 88 cities, and Palisades is only one small neighborhood in one of those cities. If anything, L.A. is facing a housing crisis as more people come to the city to work. As of 2021, L.A. counted 6.3 million workers living within its borders, which has kept housing inventory tight and prices high.
This year, new homes for sale, particularly those for first-time home buyers, are selling quickly, and with homes selling for more than two million, the market remains a solid
one for sellers.
How COVID-19 affected the Palisades real estate market
While in most areas, COVID-19 did indeed affect the real estate market, slowing down sales and lower housing prices, that has not held for California as a whole. The California real estate market
has continued to boom throughout the pandemic, and if anything, it has brought more housing into the area, including Los Angeles, and more options for low-income families.
The same can be said of the Palisades, as the income and economy in the area were largely unaffected and, if anything, increased and improved throughout the pandemic. People sought neighborhoods like the Palisades, where they could seek refuge during times of stress. In the end, real estate in wealthy areas
has held steady despite global shutdowns and economic chaos.
Palisades foreclosure statistics 2023
As with any area, there are bound to be foreclosures for a variety of reasons. The Palisades, as a distinct neighborhood, has relatively few, with only one filing
in May 2023.
Pacific Palisades median home prices 2023
The median sale price
in the Palisades in May 2023 hovered around $3,846,500, a 23% increase since the same time last year.
Palisades real estate market: should you invest?
If history and the present are any indication, the strength of the Palisades real estate market is not going anywhere. Investing in multi-family complexes or single-family homes certainly seems to be a worthy investment that will yield positive returns.
Neighborhood desirability and trends
There is no bad or undesirable area in the Palisades. It is a largely suburban area with top-quality schools, clean streets, and celebrity neighbors. It sits in the hills facing the Pacific Coast, so homeowners have stunning views and immediate beach access.
Contact Beach Rock Group for your Beverly Hills real estate needs today
Ultimately, you cannot go wrong with luxury homes for sale in Pacific Palisades, CA. When you’re ready to start your search, contact BeachRock Group
for your Pacific Palisades luxury residential home or investment property. We specialize in the luxury market in Southern California, specifically in Beverly Hills and the surrounding areas.