We live out of the country and are considering selling our US home. Is this a good time to sell?
How can we best maximize net value (proceeds) and what are our US/California tax consequences?
International home Buyers and Sellers are on the rise in
Los Angeles, and in California, as well as to other major US cities, in the US.
Los Angeles, CA, USA: For the first time in the past several years, California is once again one of the top five US city destinations for international home buyers. California overall registered a significant uptick in the sales of homes to foreign born nationals, accounting in a recent report for almost 12% of all home sales in the state. 1
In spite of record low “inventories” of available homes for sale in the Los Angeles metropolitan area, a similar market indicator in many urban US real estate markets, the available single-family homes is a key marker of evolving trends. The ‘inventory” trend often signals changes in market cycles; “Is this a good time to sell or buy.”
What is developing in the Los Angeles real estate market are value buys in both the highly sought-after affluent areas of the city as well as those areas of redevelopment, restoration and urban renewal. Many of these developing areas offer rich cultural experiences, distinguished schools, ethnic dining and LA’s signature year around moderate climate and outdoor, healthy lifestyles.
5 metropolitan areas in Los Angeles of appreciating median prices for second quarter (Q2) year to date are: 2
-Venice. Median price, $2,752,000. +7%
-Boyle Heights. Median price, $700,000. +6%
-Downtown Los Angeles. Median price, $575,000. +3%
-Highland Park. Median price, $1,1589,000. +2%
-Mount Washington. Median price, $1,381,000. +2%
5 metropolitan areas in Los Angeles of depreciating median prices (Q2, y-t-d) 3
-West Hollywood. Median price, $1,875,000. -31%
-Lincoln Heights. Median price, $525,000. -31%
-Pacific Palisades. Median price, $3,697,000. -33%
-Bel Air-Holmby Hills. Median price, $2,549,000. -40%
-Malibu Beach. Median price, $4,876,000. -54%
Where would you like to own a home in Los Angeles?
For international sellers, Q2, 2023, the Los Angeles real estate market continues to offer favorable “Seller market” supply and demand matrices, as well as delivering on the resources and infrastructure improvements to attract residents to the southern California area. There are market indicators that support the migration growth to southern California areas in 2023, reversing a trend that saw the statewide population leaving California for other destinations. Los Angeles and the southern California area continues to offer global excellence and recognition in all levels and specialties of education, a multi-faceted, diverse and robust urban lifestyle, many picturesque parks and public lands, and its signature year around climate, sunshine and cleaner air standards.
5 areas in Los Angeles with lowest inventories in Q2, year-to-date: 4
-Bel Air- Holmby Hills. 30 homes sold in Quarter 2, -11.6% (Down, year-to-date Q2, 2022)
-Pacific Palisades. 46 homes sold in Q2, 2023. -30%). -29% (Q2, y-t-d)
-Playa Del Rey. 5 homes sold in Q2, 2023 (Q2, y-t-d)
-Brentwood. 36 homes sold in Q2, -55% (Q2, y-t-d)
-West Hollywood. 21 homes sold in Q2. -47% (Q2, y-t-d).
To be noted, Malibu Beach is an exclusive group of privately owned beach homes that run along the California Coast for about 17.1 miles. Malibu Beach, a part of Malibu city counts its population at about 10,654 as per the 2020 Census. 5
For information on relocating to California and laws and regulations of home ownership, immigration, tax planning. estate planning and other relocation and mobility services, connect with the global professionals of GPSLA or visit www.GPSLA.us. or call internationally. +1-833-477-5287 (GPSLAUS).
For more information on residential real estate market trends, listings and selling, or purchasing or investing here in Southern California, visit www.hiatthomes.us, or www.sothebysrealty.com.
Data Sources:
1 California Association of Realtors by data from interview. www.car.org
2, 3, & 4 Multiple Listing Service MLS/Claw. Quarter 2, 2023. www.themls.com and www.car.org.
5. US Census 2020. www.census.gov and www.malibucity.org.
