Will the Election Affect our Market?

In January, I reported that the post-holiday market lifted off immediately on Jan 2nd. This was a good sign and followed through for the rest of the month. 3 very high sales closed in the Bird Streets, at $26M , $33M and $42M -- all of them within Doheny Estates . The slowness and price softness evident in 2019 for Sunset Strip luxury price points is at once immediately corrected. There is still high inventory in that sector, so the next few months will foretell how the trend will continue.

We see the ending of the Impeachment process just ahead, which blanketed all news sources daily with hourly coverage. It did not have any noticeable effect on local real estate activity. In late 2019, many of us predicted the Election Cycle would heavily distract or even derail luxury buyers of real estate. Now, we may back away from that prediction if this current up-swell in market activity continues through the 1st Quarter. There is the chance that come summer, the conventions will be a significant public distraction and it will slow upper end sales until the finality of the Election is reached. From there, all bets are off and it is difficult to predict.

The thing to watch is the Stock Market . Significant change there will be more impactful to our economy than the coming Election, I believe. Stocks have been riding high for a while. Any serious correction would have a prompt impact on luxury housing, and pretty much any real estate on the Westside. 

Oh - February, the month of love , Happy Valentine's Day!