Hey everyone, it’s Nathan Derry with JohnHart Real Estate, and today I’m bringing you the latest from the Beverly Grove market in the 90048 zip code for August 2024. If you’ve been following the market trends, you’ll notice that Beverly Grove is experiencing what we call a buyer’s market, with an absorption rate of just 12%. But while homes aren’t flying off the shelves, those that are selling are still fetching hefty prices.

The Numbers Breakdown

Here’s what August 2024 looked like in Beverly Grove:

• Active Listings: 58
• Homes Sold: 7
• Average Sales Price: $3,895,000
• Days on Market (DOM): 36

With only 7 homes sold out of 58 listings, the absorption rate of 12% tells us that supply far outweighs demand. This puts buyers in the driver’s seat, as they have plenty of options and more negotiating power. But here’s the kicker: $3.9 million as the average sales price shows that even in a slower market, Beverly Grove’s luxury properties are still holding strong value. So, while sellers may face longer listing times, the payoff can be significant.

A Buyer’s Market with Premium Price Tags

When the absorption rate dips this low, it generally signals a buyer’s market—more homes are on the market than buyers are ready to purchase. That gives potential buyers more leverage when negotiating prices or terms, and it might push some sellers to make concessions.

However, in a neighborhood like Beverly Grove, where homes are known for their luxury, architectural beauty, and prime location, the market still commands impressive prices. The average sale price of nearly $4 million is a testament to the value buyers see in these properties, even if they’re taking a bit longer to close deals.

The Impact of the New NAR Commission Law

Now, let’s dive into how the new NAR commission law is impacting the real estate landscape. If you haven’t heard, earlier this year, the National Association of Realtors (NAR) introduced a new policy that requires listing agents to disclose the commission being offered to buyer’s agents upfront. This transparency is shaking up how transactions are handled and could influence negotiations in both buyer’s and seller’s markets like Beverly Grove.

How Could This Affect You?

• For Sellers: The new NAR law means that sellers might feel more pressure to offer competitive commissions to attract buyer’s agents, especially in a slower market like Beverly Grove. Since the commission is now visible to buyers, they’ll likely factor it into their decision when choosing an agent. In a buyer’s market, offering a higher commission could give your listing a competitive edge.

• For Buyers: Buyers now have more clarity on commission structures, which could influence their choice of agent. If they see that a seller is offering a low commission, they might opt for a different listing where the commission is higher. This added layer of transparency could shift how deals are negotiated and closed.

• For Agents: For real estate agents, this new rule adds a layer of complexity. We’re likely to see more discussions around commission rates upfront, and in some cases, we might see sellers negotiating lower commissions to try to save costs in a slower market. However, in luxury markets like Beverly Grove, where the stakes are high, maintaining a competitive commission could be the key to closing a deal.

What’s Next for Beverly Grove?

Despite the slow absorption rate, Beverly Grove remains a high-demand area for luxury buyers. The extended days on market (36 DOM) reflect that properties are sitting longer, but they’re still selling for strong prices. As the market adjusts to the new NAR commission rules and the buyer’s market continues, sellers may need to be more strategic—whether that’s through pricing, marketing, or offering attractive commissions to buyer’s agents.

If you have any questions about the Beverly Grove market or how the new commission rules could impact your next move, don’t hesitate to reach out. I’m here to help guide you through these changing times and make sure you’re informed every step of the way.

Nathan Derry
Realtor, JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

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