Mortgage Rates Just Hit 7.4%. A New Beverly Hills House Still Sold for $6.68 Million.
The new house closed October 7, the same week the 30 year mortgage rate hit 7.40%, its highest since 2023. The buyer still showed up, but paid $320,000 under the asking price.
At a glance
Redfin / TheMLS #26869375; The Beverly Hills Estates
Redfin / TheMLS
Atlas Brief calculation
Redfin / TheMLS
Atlas Brief calculation
Redfin; public records
Redfin / TheMLS
Freddie Mac PMMS
Redfin / TheMLS
Redfin / TheMLS
LA County Assessor
Atlas Brief
What matters
- Beverly Hills still has buyers.317 S. Wetherly Drive sold for $6.675 million while mortgage rates hit 7.4%. It took about two months and a $320,000 discount from the asking price. Buyers are still willing to spend in Beverly Hills when the house and price make sense.
- This started with a $2.49 million cottage.The owner bought the property in 2018, tore down the old 1,617 square foot house, and replaced it with a 5,878 square foot home. Eight years later, the finished house sold. That is a long time to have money tied up in one project.
- A big sale price does not always mean a big profit.My estimate is that a house like this could have cost $3 million to $4 million to build. Add the $2.49 million purchase, and that is roughly $5.5 million to $6.5 million before financing, property taxes, selling costs and any other project expenses. Depending on the actual costs, this could have been close to break even or even a loss. We do not have the builder’s costs, but I would not assume this was a big win.
- The location is what keeps my attention.This was not the only nearby house finding a buyer. Homes on S. Clark and S. Almont also moved quickly. To me, that shows there is still demand for this part of Beverly Hills. As an owner and builder, I see buyers willing to pay for a finished home here. The harder question is whether you can buy the land, build it and carry it at a cost that leaves you a profit.
The Team That Got It Done
Spencer Payson at The Beverly Hills Estates represented the seller.
310.486.8039
spencer.payson1@gmail.com
CA DRE 01864609
Sandy Dunkley at Equity Los Angeles represented the buyer.
310.877.1887
sandydunkley@gmail.com
CA DRE 01832146
What Happened
In 2018, someone paid $2.49 million for a small, old house at 317 S. Wetherly Drive.
They tore it down and built a much larger home.
The new house went up for sale in August for $6.995 million. It sold in October for $6.675 million.
That was $320,000 below the asking price.
Mortgage rates hit 7.4% that same week. The buyer still bought.
What Did the Seller Really Make?
The house sold for about $4.2 million more than the owner paid for the property.
But that is not the profit.
I would estimate $3 million to $4 million to build a house like this. We do not know the actual cost.
Then add loan costs, taxes, plans, permits and the cost to sell. The owner held the property for eight years.
My take? They may have sold close to break even. At the higher end of those costs, they may have lost money.
A $6.7 million sale sounds great. What matters is how much was left.
What I See as an Owner
People still want to buy in Beverly Hills.
This house found a buyer in about two months. Nearby homes on S. Clark and S. Almont also found buyers quickly.
But price still matters. This buyer paid $320,000 below asking.
That is what I’m watching. Buyers are here. They will spend millions. They still want a fair deal.
For a builder, every extra month costs money.
The demand is there. Making a profit on the build is the hard part.
I follow these deals because I own and manage real estate too. I want to know what sells, what buyers pay and whether the numbers work.
Know someone involved in this sale? Ask them to reach out.
Sources: Redfin, TheMLS, Los Angeles County public records, Sotheby’s International Realty and Freddie Mac.
Write to David Safai at David@AtlasBrief.La
Appeared in the Oct. 10, 2026 edition of The Tape.