Southern California is known for its streets lined with palm trees, beaches and glitz and glam. This includes homes that are so large, they can only be described as mega-mansions. However, a recent report from The Wall Street Journal shows that there is a growing inventory of these palatial homes and not enough buyers.
In Los Angeles alone, there are currently 50 ultra high-end homes under construction and are expected to cost anywhere from $35.5 million to $500 million. And in typical Hollywood fashion, real estate agents are ditching open houses and instead inviting potential buyers to lavish themed parties to check out these grand estates.
The influx in mega-mansions began several years ago where there was increasing interest from foreign buyers for such homes, but builders are seeing that domestic demand is far less, leaving them with a surplus of superfluous properties.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.