Reduced: Prices falling in expensive neighborhoods

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The L.A. Times’ Peter Hong reports this morning that the luxury real estate market is beginning to crack. Homes like the Beverly Hills mansion at left are being reduced in price -- this one was originally listed at $12 million, then reduced to just under $10 million.

‘Median sale prices fell by 13% in Beverly Hills in April, compared with the same month last year. Rancho Palos Verdes dropped 18% over the same period, while Newport Beach’s 92660 ZIP Code took a 34% hit, according to DataQuick Information Systems.’

More: ‘Experts say these areas and others are catching up with price declines that struck first in outlying suburbs such as the Antelope Valley and the Inland Empire, where many first-time home buyers purchased their properties with sub-prime loans. ‘You can’t have one market hugely cheaper than another forever,’ said UC Berkeley professor Thomas Davidoff, who specializes in real estate.’

I’m curious to hear your thoughts on this story, as this is one of the two or three most-discussed subjects on this blog: whether expensive neighborhoods will eventually see large price declines. I know many of you have been waiting and hoping for significant declines and haven’t seen them yet in your neighborhoods of choice. Thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: Los Angeles Times