Ali Safavi Views on Santa Monica Market

New York City NY

28 November, 2021

1:10 AM

Description

Santa Monica has always been a market spearheaded by the demand, not the offer. A small niche community of luxury homes, prime real-estate, and premium services — and almost too little product available for enthusiastic buyers. What’s not to like about Santa Monica real estate? The demand is high when it comes to homes in this area, and the latest insight and trends show that the market isn’t going to cool down anytime soon, said Ali Safavi. Santa Monica Housing Market today According to surveys and key business intelligence statistics, a Santa Monica zip code is one the most sought in California. In October 2021, the median listing home price in the area was $1.8M, that’s a 14.8% increase from the year before. Price per square footage has almost doubled, and the value of a property in the area is at an all-time high. “Santa Monica is one of the only spots in California where the sale-to-price ratio is almost 100%,” market insider and expert in the field, Ali Safavi, explains. “Supply and demand might be about the same, it’s a balanced market, which means that most buyers don’t barter. They pay the asking price and are grateful for it.” How hot is the Santa Monica market as of 2021? It’s an incredibly competitive market, one where most homes either sell at a list price or, as statistics have shown, sell above list price. By how much, by 44.7%. “We hardly ever see homes with price drops and when we do it has more to do with the seller’s need to close fast and get instant liquidity than with the actual pressures of the market. The truth is,” Ali Safavi relays, “is that most homes get multiple offers. There’s a lot of competition in the Santa Monica area. It’s a seller's market and most buyers are willing to pay handsomely for the opportunity to have a home in the neighborhood.” Will prices continue to rise? “Santa Monica is getting a lot of pressure right now. Prices will not only rise, but the value of current homes in the area will also skyrocket. The building code changed last year for Santa Monica when it comes to what you can and cannot build. This in turn transformed the cost of what little land there was —- it’s worth. Entry-level houses ballooned to $4 million, while the bulk of the market, the glut, high-end luxury homes, went up north of $6 million — this is in the North Montana region alone,” Ali Safavi explains. Santa Monica real-estate is scorching hot right now, and there doesn’t seem to be an end in sight to its heat. It really is a seller’s market.