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Bev Hill Real Estate Beverly Term Paper

Speculators aren't typically eyeing properties worth two to three million dollars and trying to turn them around for a quick profit, that is. As this was the kind of activity that was in part driving the housing bubble in the rest of the nation it makes sense that such a trend would not be fully visible in the 90210 zip code. It also makes sense that greater volatility and sharp upswings in prices would be seen during the depths of the housing crisis in 2008 and 2009, as it is during such periods that high-end areas like 90210 are more likely to experience speculative purchases and investments and thus to see the rises and drops attendant with this activity. Foreclosure rates in Beverly Hills as a whole and in 90210 have remained higher than typical for the area since 2008-2009, though they are not as high now as they were then, and this has continued to produce volatility and uncertainty in the area's real estate market despite a somewhat calmer atmosphere (Trulia, 2012). Current State of the Market

One of the most significant trends to not in the Beverly Hills and 90210 real estate markets is the drop in the number of sales occurring per year, which has gone from a high of close to 200 for Beverly Hills (100 for 90210) in 2000 to a low of just under 50 (barely above 20 for 90210) in 2009, with annual sales currently about half of their 2000 levels (Trulia, 2012). The market is slow and appears to be running rather flat now, and while this would not necessarily affect long-term investment it would mean that a shorter ownership period would be unadvisable, and there are investments likely to yield much better short-term gains (Trulia, 2012). 90210 and indeed all of Beverly...

While some prices in the area appear to be trending back towards relatively stable growth, there are still high numbers of foreclosures and short-sales for the area and ongoing uncertainty regarding the potential future value of these properties (DataQuick, 2012; Movoto, 2012; Trulia, 2012). If a foreclosure or short-sale property could be found and purchased quickly before a bidding war ensues it might make for a wise investment, however the ongoing volatility and uncertainty of the market combined with others engaged in this type of speculative behavior make this a far-from-secure investment opportunity.
Conclusion

While purchasing a multi-million dollar home for half of its value certainly makes for an attractive-looking investment, looking behind the curtains is essential when considering a real estate investment. Beverly Hills and 90210 are markets that at other times would make for solid long-term investments, however the potential for current short-term losses and ongoing long-term uncertainty make the current market one to be especially wary of.

References

DataQuick. (2012). Southern California Home Resale Activity. Accessed 4 December 2012. http://dqnews.com/Charts/Monthly-Charts/LA-Times-Charts/ZIPLAT.aspx

Movoto. (2012). Beverly Hills, CA Market Statistics and Real Estate Trends. Accessed 4 December 2012.…

Sources used in this document:
References

DataQuick. (2012). Southern California Home Resale Activity. Accessed 4 December 2012. http://dqnews.com/Charts/Monthly-Charts/LA-Times-Charts/ZIPLAT.aspx

Movoto. (2012). Beverly Hills, CA Market Statistics and Real Estate Trends. Accessed 4 December 2012. http://www.movoto.com/statistics/ca/beverly-hills.htm

Parsons, J. (2012). Real Estate Charts. Accessed 4 December 2012. http://www.jparsons.net/housingbubble/

Trulia. (2012). Beverly Hills, 90210 Market Trends. Accessed 4 December 2012. http://www.trulia.com/real_estate/90210-Beverly_Hills/market-trends/
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