Notes from the Global Committee: Why Your Los Angeles & SGV Property Value Isn't Just Local

The old adage in real estate is "location, location, location." For decades, that was true. The value of a home in Los Angeles or the San Gabriel Valley was largely determined by the school district, the street's appeal, and the local job market.

But as I enter my second year serving on the Global Real Estate Committee, one thing has become glaringly clear: that hyper-local view is now dangerously incomplete.

We live in a globally connected financial system. The days when an event in London, Tokyo, or Beijing didn't ripple across the ocean to affect a home sale in Pasadena or West LA are over. Today, capital, policy, and risk are global—and they are practically knocking on your front door.

If you are a homeowner or a prospective buyer in Southern California, you need to understand that your competition and your home’s value are being influenced by macroeconomic forces thousands of miles away. Here are the three key global trends I’m tracking that are directly impacting our local market right now.

1. The "Butterfly Effect" of Global Interest Rates

Most people watch the U.S. Federal Reserve to guess where mortgage rates are headed. That’s important, but it’s only half the story. We operate in a global debt market.

When central banks in Europe or Asia adjust their policies to combat their own inflation or stimulate their economies, it shifts the flow of global capital. Investors around the world are constantly seeking the best risk-adjusted returns. If bond yields become more attractive in another part of the world, capital can flow out of U.S. mortgage-backed securities, keeping our rates higher than domestic economic data might suggest.

For a buyer in a high-cost market like Los Angeles or the SGV, even a fractional difference in rates caused by global pressures can significantly impact purchasing power, ultimately affecting what a seller can realistically demand for their property.

2. The Shifting Tide of Foreign Capital

Southern California, and specifically areas like the San Gabriel Valley, has long been a premier destination for international investment. For many global families, an SGV property is more than a home; it’s a safe-haven asset and a legacy hold.

However, the origin and volume of that capital are constantly shifting based on geopolitical stability and economic policies abroad. A change in capital outflow restrictions in Asia or economic uncertainty in Europe directly impacts the buyer pool for properties in our area, particularly in the luxury and upper-mid-range segments.

When I price a home, I don't just look at comparable sales down the street. I have to consider the strength of the international buyer pool at that moment in time. Is this a moment where foreign capital is aggressively seeking safety in U.S. real estate, or is it pulling back? The answer changes the strategy.

3. The Global Reinsurance Crisis Hitting Home

This is perhaps the most underrated factor currently affecting property values. You know your homeowner's insurance premiums are rising, especially if you are near a fire zone in the hills of LA or the foothills of the SGV. But this isn't just a local issue.

Insurance companies are backed by massive global "reinsurance" firms that insure the insurers against catastrophic losses worldwide—from wildfires in California to floods in Europe and typhoons in Asia. As these global climate-related risks increase, reinsurance costs skyrocket.

These costs are passed down the chain, landing directly on your annual premium. In some cases, it’s making properties effectively uninsurable or prohibitively expensive to insure, which directly impacts their marketability and value. A savvy listing strategy must now proactively address insurability before a buyer ever makes an offer.

The Takeaway: You Need a Strategist, Not Just an Agent

This is why I always say that putting a sign in the yard is the last step of selling a home, not the first.

In a market influenced by global currents, you need more than just a salesperson; you need a project manager and a strategist who understands this macro landscape. You need someone who can translate what’s happening in the global economy into a concrete, data-driven plan to maximize the value of your specific asset in Los Angeles or the San Gabriel Valley.

The market is bigger than our neighborhood now. Your strategy should be too.