Bidding wars are breaking out for luxury homes in such wealthy Los Angeles enclaves as Brentwood, Beverly Hills and Bel Air as an increasing number of buyers bet on rising home prices and investors return to the market. Even properties in need of extensive renovation are being fought over by shoppers who expect to resell them for more after a remodel or rebuild, reports Bloomberg.
“The percentage of people who think prices are only going to go up is the greatest I have ever seen in my career,” said Syd Leibovitch, president of Rodeo Realty Inc. in Beverly Hills, according to B.
The number of sales of Beverly Hills homes priced at $2 million and higher climbed 11 percent in the first quarter from a year earlier to 39, according to DataQuick. In Brentwood, they increased 56 percent to 25 , and in Malibu they gained 64 percent to 23.
Bottom line: Bernanke's money printing is sluggish (at 6% annualized versus an earlier 20%) and the overall economy is sluggish, but there are pockets of money. Silicon Valley is one pocket for sure and it appears that Obama Country, i.e., Beverly Hills, is another.
In short, Imagine what it feels like to be earning .05% on your $3 million deposits while watching currencies get butchered?
ReplyDeleteI suspect the sentiment is being driven in a different fashion from post 1996 bubblenomics