Michelle Schwartz is a Beverly Hills native and true L.A. local, bringing over a decade of real estate expertise to her role as a Managing Partner at The Agency, overseeing Valley offices in Sherman Oaks, Calabasas, and Studio City. With a thriving career since 2010, Michelle’s in-depth knowledge of L.A.’s neighborhoods, coupled with her background in brand marketing, provides a unique advantage in the industry. We sat down with her to talk about the Los Angeles real estate market—and she had many gems of knowledge to share.
Q: Can you provide an overview of the current real estate market in your area? What are the key trends and factors influencing it?
A: There’s no way around it, this market is funky and unpredictable—things don’t make sense! I’m finding that referencing comps for pricing is proving inaccurate because of the change in the last eight months. This slowing market has both buyers and sellers acting like opposing magnets; sellers are kicking themselves for not selling a year ago and buyers are willing to wait. Having an emotional connection is still generating multiples but not at the same pace as months back. With mortgage rates being high and prices still holding, there needs to be an immediate connection between buyer and property.
Q: How has the pricing and affordability of real estate evolved in your market in recent years? Are there any specific neighborhoods or areas that have seen significant price changes?
A: As a lifelong Angeleno, I have witnessed and assisted in what I call the L.A. migration! We always start on the Westside, in more concentrated city living and upon starting a family, the migration is to the Valley. The Valley is always revered as more affordable although prices have skyrocketed with some massive sales and owners of note in the last decade. The valley is on the map today in ways it was never considered when I was growing up. Land, house size and proximity to both public and private schools are the highest motivational factors when moving within Los Angeles.
Q: Have there been any recent regulatory changes or economic factors that have impacted the real estate market in your region?
A: Residential properties are in high demand, inventory is at an all-time low and we’re seeing prices being run up due to a lack of homes on the market. The rise of interest rates has been a burden to all. The ULA Mansion Tax has had a negative impact on sales of $5M+ and the Wildlife Ordinance will have a massive impact on developers and owner-users alike. We’ve also experienced the impact of the Writers & SAG Strike and Los Angeles’ homeless crisis has become a topic of consideration over the last three years unlike ever before. Fire insurability has also played a factor in the affordability and viability of homes.
Q: Are there any notable shifts in buyer preferences or behavior that you’ve observed?
A: Buyers have become extremely savvy when house hunting—now more than ever people are aware of what constitutes a “flip” and attention to detail is at an all-time high. Their preference is to buy something super turnkey and ready to move in. They’re also seeking out privacy and gated homes, outdoor entertaining space, indoor gyms and wellness spaces, including saunas, steam rooms, cold plunges and meditation rooms. It’s all about lifestyle.
Q: How have technology and online platforms influenced the real estate buying and selling process in your market? Have there been any recent innovations or platforms that have gained popularity?
A: Having a strong social media presence and a large following is extremely beneficial in terms of getting more listing exposure. Gone are the days of postcards and print advertising. Efficiency and the ability to turn on a dime with the use of digital media and platforms make our job faster-paced but the ability to tailor marketing outreach a lot easier. Buyers are still searching online for properties as their first entry point in the market.
Q: What advice would you give to potential buyers or sellers in your market based on the current trends and activity?
A: This market is not for the faint-hearted. If a seller is banking on offers over asking, multiple offers, or a quick sale, they are still thinking they are in last year’s market. $5M+ homes in our market are not flying off the shelf, especially new-construction homes. It’s expected that developers wil have to take a 5% to 10% hit on their asking versus sale price. Buyers have much more power than they have had in years. The phrase “Cash is King” has never been more valuable. This year, of my transactions to date, almost half have been cash transactions. On the flip side, we are reminding our buyers that you “date the rate and marry the house” and with rental pricing still at all-time highs, you may as well start to invest your money into your own asset and we will refinance when things neutralize in the next 18 months or so.
Q: Can you share any examples of how you have had to get creative in the current state of the market?
A: The days of just putting a property up on the MLS and online and kicking back and waiting for the offers to roll in are behind us. With properties accruing more days on the market, as agents we have to continue to show our sellers that we are innovative, creative and doing everything we can to get a property sold and in front of buyers. Recently, I had a property that had two others in the same area with a similar pricepoint and similar look—all three agents, all at different brokerages, are teaming up for a progressive open house. Visitors who come to see all our listings on the same day will be offered a $300 gift card!
Anything we need to do to share info and opportunities is just a smarter way of doing business. This is not the time or market to get complacent—if we expect ourselves to weather this storm, this is the time we step up and stand out. We will all be better for it.
