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Rodeo Realty President Syd Leibovitch on what is behind the boom for luxury homes in Southern California, particularly in Los Angeles.
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Well a lot of supply and demand turning the Los Angeles real estate market on its head while the rest of America's housing market as you know is stuck in a -- Sell the Beverly Hills homes price to two million in higher climbed 11% in the first quarter from a year earlier according to data quick.
With more in the luxury home beating -- -- image he's president of rodeo reality -- great to have you.
I know you specialize in the Southern California real estate market gonna have to ask you about Facebook.
And the ripple effect from the IPO today northern California there was a store in Los Angeles Times this week.
About how bidding wars are going on their -- from all of these instant millionaires and houses are selling for well above ask are you hearing anything about that.
Yes I am and that's -- unusual I would think that I would think they're gonna see a good pop and prices over there as well.
And -- -- -- that this stock doesn't perform well who knows what will happen after that.
That was my follow up question -- -- how much how consistent will that -- is it just a one shot deal a one hit wonder if you will or will actually have.
And meaningful effect on lifting the housing market.
You know I know and San Diego in the ninety's with Qualcomm it really it really lifted the market quite a bit which also happen in the Silicon Valley now.
Whether that company performs well it took performs well it'll stay happen -- it doesn't you know we'll see.
Something like we saw in their early two thousands.
So let's -- Southern California talk about Rodeo Drive in all of these neighborhoods -- Beverly Hills.
I'm not all that surprise because a lot of people buying these homes don't really follow the interest rates market does that have something to do with it.
You know I think it's more that there's just not a lot of inventory right now.
And the market is is pretty hot so we're seeing multiple offers on everything not just in the high ranges but even in the lower price houses as well.
What's making it hot who's buying -- are these foreign buyers -- you know trying to to jump in on -- still weak dollar but that's been changing -- latest we know it is -- concern about the currency valuation changing.
You know we do have foreign buyers coming in in fact last year the highest price counsel for somebody from Great Britain.
And the year before the highest price counsel for somebody from from Saudi Arabia itself we are seeing foreign buyers but we're also seeing.
You know people here -- happen with much more optimism than we've seen in the past waiting -- that.
Well I think low interest rates are helping certainly probably not in the super high end because a lot of those sales -- cash.
But with these low interest rates -- I think also real -- a great hedge against inflation certainly better than they gold in my estimation.
-- do you think interest rates are going to falling really it seems like week after week -- Freddie Mac thirty year fixed -- new record low at 37 whenever how how low just sees that as the benchmark do you think guy it will go or are are we at the bottom.
You know I've got to be Iran got asked as I've refinance my home about ten times think -- we're at the bottom.
Buddy -- but I do think he had but I do think I do you think.
I think you get -- -- -- to -- percent higher by the end of the year.
OK really so this is the time -- fairly you're shopping interest rates did to jump in now then just what you're seeing I think years.
-- I figure at the bottom okay.
How the ripple effect do you think what you're seeing in -- higher and his -- neighborhoods in Southern California will have on the rest of -- market California boy that's state as a whole is any fiscal.
Nightmare dealing with a nightmare right now so will this have a larger impact on that the State's economy.
You know I don't know that anything's gonna help that State's financial position but I think that the real estate market is very stable and very strong.
You -- to me I've been doing this a long time everything always over corrects what it does you know everybody gets -- goes up more than it shed.
When it's dropping everybody so depressed a drop subordinate -- this little 10% bounces just a correction for for that I believe.
All right and -- it takes it on nomination the nation's housing market evening again we keep characterizing it as we're bouncing along the bottom.
Leasing any light.
I think you know I I talked to people from all areas I think buyers missed the bottom and you know they're gonna catch it on the way out.
And I guess when your -- starts by and his second -- you're gonna nowhere near in the top.
That patient basis and make an official metric for that they've you know been the -- -- acts.
Did I I have no idea before -- I finally figured it out.
That deadly -- talking -- today thanks a lot.
