Central Los Angeles’ gorgeous Hollywood Hills neighborhood
is home to some of the most prestigious and in-demand pieces of luxury real estate in the country. Situated in an eye-catching pocket of semi-mountainous landscape in the Cahuenga Pass in the Santa Monica Mountains, Hollywood Hills has long been a highly coveted address for LA’s finest.
Over the last decade, there’s no doubt that the real estate market here has exploded. But more recently, we’ve seen some interesting trends arising in the area related to buyer demand, migration in and out of the city, and other aspects of the market. Read on for an expert guide to help explain some of these patterns and forecast what we can expect to see in the coming months.
The Hollywood Hills housing market forecast 2023
Let’s start out our forecast of the state of the Hollywood Hills real estate market with a look at the current market trends in the county and Los Angeles as a whole. From there, we can expand to speak more about what’s likely to happen throughout the rest of the year.
Los Angeles County housing market trends 2023
First, let’s turn our attention to some more specific patterns we’re noticing cropping up in the greater Los Angeles County area.
Los Angeles market statistics 2023
Within Los Angeles
as a whole, there have been 932 existing home sales, which is a 27.5% drop since last year, likely due to buyer hesitation as seen nearly across the board nationwide. The median price of single-family homes in Los Angeles
currently sits at $1.22 million, which is just slightly (2.7%) lower than last year. Homes are spending just 18 days on the market, with a 22.7% increase in the number of active listings. Finally, 27.3% of properties have experienced reduced prices. This indicates that sellers throughout Los Angeles are now more willing to negotiate on the price in order to sell their properties more quickly.
Hollywood Hills market statistics
Zooming in a little closer, we will now take a look at the market trends in this charming neighborhood.
Home values have decreased slightly but still remain competitive
One of the more remarkable trends that we’ve been noticing lately in Hollywood Hills real estate is a slight dip in the median value of homes in the area. If we look at the total number of homes sold in the neighborhood since 2022, we’ve seen an average drop in sold prices of 3.3% across the board
. Currently, the median sold price sits at $1.7 million
— higher than Los Angeles as a whole.
However, it’s important to note that the most upscale properties in the Hollywood Hills neighborhood command much higher prices of upwards of $10-20 million. These opulent estates boast amazing features like winding drives, outdoor fireplaces, spiral staircases, high ceilings, acres of space, ridgetop vistas, pristine landscaping, and elegantly artistic architectural details.
Stable interest rates
Interest rates are up
across the country from late 2022 to May 2023, near historic highs. However, the good news is that interest rates have fallen slightly since their highest point at the beginning of the year. As of May 2023, the average interest rate for a 30-year fixed mortgage sits at 6.36%, which has remained stable since February. We can expect these rates to stay relatively flat for the coming months.
Investing indicators will favor landlords
In general, we look out for several signs to forecast whether or not landlords will fare well in a city, such as a growing job market, plans to develop more housing projects in the future, consistent demand for rental property, and rent prices that remain affordable for a majority of people.
Hollywood Hills currently looks favorable for landlords. Demand for luxury property has remained strong consistently, and the total inventory of available homes for sale within Los Angeles continues to climb, ensuring that landlords will have more opportunities to invest in the area.
Negative net population migration
For three years in a row, California as a whole recorded a drop in population
. In Los Angeles County, 109,000 residents moved to other states throughout the course of 2022. This pattern is due, in part, to several factors, including the increase in the cost of living in Hollywood Hills and the surrounding area in the last year and the lowering property values we’ve seen occur in other parts of the nation.
The Hollywood Hills real estate market: should you invest?
Putting together all of this data into one cohesive report, all signs point to now being an ideal time to invest in real estate in Hollywood Hills. At present, we would still categorize the housing market in Hollywood Hills as a seller’s market, but we expect that buyers will begin to be more favored in the area if we continue to see home sale prices dip and inventory remain consistent. With more homes throughout Los Angeles experiencing a slight pricing decrease, now may be the perfect time for prospective buyers to enter the real estate game.
As always, the best plan of action is to partner up with an experienced real estate professional in the area to learn more specific insights on the parts of the city that are most amenable for investors, especially as the market shifts into early summer and more homes come up for sale.
Reach out to a local expert real estate agent today
With that, we’ve come to the end of our forecast for the Hollywood Hills housing market in 2023. If you have any questions about beginning your journey in Hollywood Hills real estate
, it’s time to team up with a trusted expert who knows how to get results. Contact highly esteemed broker Jennifer Landon
of Landon Realty Group for more information. With over $1 billion in sales and 20 years of experience backing her solid reputation, team up with Jennifer to get started toward your goals.*Header photo courtesy of Shutterstock