The housing correction is toxic for Britney Spears

Britney Spears just sold her luxury home in Calabasas, California, for $10.1 million just eight months after buying it. It shows that the 41-year-old singer, who was once considered the “Princess of Pop,” did not stop the correction of the housing market, which took a $ 1.7 million loss on the sale, according to Vertical real estate of various, filth. He might quote one of his biggest hits: “You’re toxic, I fell.” But a closer look at this transaction reveals a lot about housing prices on the luxury side, in southern California, and across the country.

Spears bought her former home for $11.8 million last summer after marrying her trainer Sam Asghari and nearly a year after her more than decade-long conservatorship ended, meaning it was one of the first big purchases he made without. court management. At the time of Spears’ first home purchase, a source said SPOKE People that it was important to Spears to have “a house that she picked up without having to ask for permission.”

The seven-bedroom mansion is located in the Estate of Oaks neighborhood and sits on 1.6 acres, with a guest cottage, a pool with waterfalls, and a movie theater. Spears reportedly sold the home due to privacy concerns, according to Elle Decoration. But he still lives large in his nearby mansion in Thousand Oaks, which he bought under conservatorship in 2015.

However, the economic environment exactly lends itself to luxury home buyers, or sellers for that matter. the the housing market is correcting itself after a rise in mortgage rates in 2022 after home prices rose during the Pandemic Housing Boomand it is especially difficult to western markets experiencing near double-digit home price declines. Not to mention that the luxury segment is also correcting, with fewer buyers choosing to spend big—and Spears’ former home falls into two camps.

Luxury home sales fell 38.1% year-on-year in the three months ended November 30 last year, according to Redfin. That’s the biggest decline since at least 2012, which is how far Redfin records go. Coastal markets, mostly in California, led the decline. San Diego saw a 60.4% decline over the same period, while the San Jose, Riverside, and Anaheim markets all saw declines of more than 55%.

On a seasonally adjusted basis (see chart below), home values ​​in Greater Los Angeles are down 3.4% from their peak in 2022, according to Zillow Home Value Index. Without seasonal adjustment, home values ​​in Greater Los Angeles fell 8.2%. (National, US home prices fell 2.7% from their 2022 peak).

The Calabasas home is listed by Bryce Pennel, director of luxury real estate at Compasswho did not immediately respond It’s fortune request for comment. The buyer, according to dirt, is Ezekiel Tyson Jr., a Dallas-based attorney and veteran real estate investor.

pencil SPOKE fox NEwS that the main goal is to sell the house as quickly and painlessly as possible because houses in the neighborhood are usually on the market for more than a year and go through a reduction in price before selling.

“I got a buyer in less than seven days and negotiated a non-contingent all-cash offer that closed in three business days,” Pennel told Fox. “It was discussed and mutually agreed that we would rather take the slam dunk than risk selling for less a year from now, after months of accumulated costs and carrying costs.”

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