"Pricing was a little high, so we went through a correction," said Alexander Ali, an external spokesman for Nile Niami, the movie-producer-turned-developer of multi-million dollar mansions in Los Angeles. With lower prices, Ali's predicting that "a lot of homes close in the next month."
In May we noted how demand for the nation's most expensive properties collapsed in 1Q19. The average sale price for a luxury home corrected the most in Boston (-22.4%), Newport Beach, California (-21.8%), and Miami (-19.3%), YoY in 1Q19.
Taking a closer look at the Los Angeles market's new dynamic: foreign buyers aren't showing up like they used to.
Ali said Niami held an invitation-only open house for a six-bedroom mansion on Londonderry Place. The event cost $100,000, included exotic pool dancers, open bars, fancy food, and even a camel show. The asking price of the mansion has plunged 36% to $34.95 million - with minimal interest as foreign buyer demand has evaporated. The developer's portfolio includes a $44 million estate, which the local media said was sold to a Saudi client.