News Summary
Mark Wahlberg’s Beverly Hills mansion has been sold for $55 million, considered a bargain from its initial list price. The luxurious property is now owned by Paris Hilton and her husband after their Malibu home was lost to wildfires. The sale reflects ongoing trends in the high-end real estate market, with demand driven by wildfires and foreign buyers. Meanwhile, LA faces a housing shortage and homelessness crisis amid economic shifts.
Beverly Hills — Mark Wahlberg’s lavish mansion in Beverly Hills has been sold for $55 million, a price considered low by many real estate brokers given the property’s original listing of $87.5 million. This sale marks the highest transaction price in Beverly Hills for the month of June 2023.
The sprawling 30,500-square-foot mansion was sold to celebrity couple Paris Hilton and her husband, Carter Reum. The couple purchased the home after their previous residence in Malibu was destroyed in wildfires. The urgency to close the deal was further emphasized as Wahlberg reduced the asking price to circumvent the impending implementation of Los Angeles’ new mansion tax.
Wahlberg initially flipped the mansion earlier for $63 million before this recent sale. The mansion, which boasts luxurious amenities and extravagant features, is part of a significant trend in the high-end real estate market, particularly in California.
June 2023 saw the sale of several multimillion-dollar properties in Los Angeles, with five out of the ten most expensive homes sold being in California and three located in Beverly Hills. One such property was acquired for $32 million by Richard Saghian, CEO of Fashion Nova, who plans to utilize it temporarily while renovations are completed on his Bel Air megamansion, known as The One. That property was famously purchased at auction for $126 million in 2022 and expands over 100,000 square feet.
The ongoing demand for luxury homes has been fueled by buyers displaced from their residences due to wildfires, as noted by agents in the area, including Nicole Plaxen. This demand is further bolstered by an increase in foreign buyers, particularly from China, showing an uptick in interest in the Los Angeles real estate market.
Currently, Plaxen is listing properties valued at $118 million and $68 million, both of which have drawn considerable interest. Additionally, an off-market property in Los Angeles recently sold for around $60 million, hinting that the luxury market remains active despite wider economic fluctuations.
While real estate transactions escalated in certain areas, the overall dynamics of the housing market in the U.S. have shifted significantly. For the first time in years, the number of homes for sale has surpassed the number of interested buyers, resulting in a buyer’s market. According to a study by Redfin, there are nearly 500,000 more sellers than buyers as of April, contributing to slower sales across the board.
This changing landscape has driven down the median sale price in Los Angeles to approximately $900,000, coupled with declining home sales that began in 2022 due to rising mortgage rates. Homeowners are increasingly adjusting their prices and offering incentives to attract potential buyers.
In addition to real estate trends in Beverly Hills, there are pressing social issues in Los Angeles. The Los Angeles Homeless Services Authority (LAHSA) recently halted new enrollments in time-limited housing subsidies due to budget cuts. This program is vital for assisting homeless individuals with temporary rent payments and is expected to complicate their transition to permanent housing. These adjustments come against the backdrop of rising homelessness in the region, with over 72,000 individuals reported as homeless in L.A. County, despite a slight 4% decline this year.
Local service providers, such as Union Station Homeless Services and LA Family Housing, face challenges, having to turn away families due to a shortage of funding and available beds. The cut to time-limited subsidies comes after the approval of Measure A in November, intended to generate significant funding for homelessness solutions. Councilwoman Nithya Raman has emphasized the importance of these subsidies in effectively addressing the homelessness crisis.
As the number of available homes increases and economic pressures mount, market predictions suggest U.S. home prices may decrease by around 1% by the end of the year, presenting a complex landscape for both the luxury real estate segment and broader housing needs in Los Angeles.
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Additional Resources
- CNBC: Los Angeles Luxury Real Estate
- Wikipedia: Real Estate
- Los Angeles Times: Homeless Crisis
- Google Search: Los Angeles Housing Market
- NY Post: Beyoncé and Jay-Z’s Mortgage
- Google Scholar: Real Estate Market Trends
- Beverly Hills Courier: Real Estate Market
- Encyclopedia Britannica: Real Estate
- Realtor.com: Home Prices Down in June
- Google News: Los Angeles Real Estate News
Author: STAFF HERE BEVERLY HILLS
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
