$1 Million Plus Dream Home “Deals” Abound – So Who’s Buying?
(January 10, 2011) If you’re a seller in the luxury property market in San Diego County right now, these are tough times. Overall county-wide, higher-end homes are selling, but not as fast as most sellers or Realtors® would like. In the past 3 months, roughly 350 San Diego County homes sold for over $1,000,000. But that level of activity is not much consolation to the estimated 1500 sellers with $1 million plus homes that still remain on the market as of this writing.* Nor is it much consolation to owners in those areas of the county where high-end home sales have come to a virtual halt.
In Bonsall, Fallbrook, De Luz, Hidden Meadows, and Pauma Valley there are stunning estates on the market, but sales are slow, remarkably slow. These properties (Update: Click here for a complete map listing of current $1 million plus properties in region), some featuring working groves, equestrian facilities, estates with extensive compounds, etc. offer owners an “out of this world” lifestyle, but few buyers are stepping up and closing deals. On the other hand, practically no properties in these areas are classified as “distressed.” It seems that most owners are holding tight right now. As of this writing, there are almost no foreclosed properties over $1,000,000 in the Bonsall, Fallbrook and nearby areas.
Is there cause for optimism? Perhaps. Short-term, the market is holding. Longer-term, we need buyers to step up. One scenario is that foreign money, pacific rim money, LA or Orange County money, or even east-coast money begins to understand the calculus — and the embedded value — inherent in North County near-coastal estates properties. Perhaps these buyers start acquiring these larger land holdings & luxury properties as a cushion or hedge, as a “second home,” or to relocate to paradise” on the cheap.” We think one of the key factors to moving the market is to bring awareness this area’s unique lifestyle. There is no replicating what these areas have to offer the luxury buyer.
* aggregated data from SANDICOR MLS and other sources – estimated only: single family: detached, condos, townhomes
Published on Monday, January 10, 2011