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Spec home building is booming in Southern California

On Behalf of | Apr 3, 2017 | Residential Real Estate |

Residential real estate markets in many parts of Southern California have been extremely active in recent years, and industry experts say that the resulting shortage of supply has led to a rapid increase in speculative building. Custom builders are also being attracted to the region by soaring prices. Residential properties in prime parts of Santa Monica are now selling for more than $4,800 per square foot according to the real estate information company DQ News, and prices in other upscale areas like Beverly Hills, Pacific Palisades and Marina Del Rey are also rising fast.

Some of the speculative homes built in Southern California take luxury and opulence to new heights. A mansion built on a Bel Air hilltop features soaring views of Los Angeles, 38,000 square feet of living space and the Golden State’s largest infinity pool. The property has been placed on the market at an eye-watering $250 million, which includes a luxury car collection worth an estimated $30 million.

Many of the speculative homes currently for sale in Southern California make bold architectural statements and are loaded with luxurious amenities. They have been designed to appeal to affluent buyers from the lucrative technology and entertainment sectors who want to make a statement and entertain frequently. Despite the building boom and soaring prices, some of the area’s brokers believe that residential real estate in Southern California remains highly undervalued.

Buyers and sellers are often anxious to complete real estate transactions quickly when markets are active and competition is fierce. While finalizing deals can be relatively straightforward when all parties involved are motivated to close, seemingly minor paperwork errors may cause unanticipated delays and derail transactions. Attorneys with experience in complex property transactions could seek to keep deals moving by ensuring that California’s disclosure requirements have been met and all title encumbrances have been accounted for.