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Finance Real Estate Death of the San Diego Luxury Homes Market
Finance Real Estate Death of the San Diego Luxury Homes Market
| Death of the San Diego Luxury Homes Market |
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| Written by Adam Pascu |
| Tuesday, 13 October 2009 09:34 |
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While investors and first-time buyers have been eating up all the homes for sale in lower price ranges, very little has been going on in the luxury markets around town. We are now starting to see: increasing numbers of active homes for sale, decreasing numbers of sales, decreasing property values, more failed listings, and an increase in bank-driven sales. The number of homes for sale over $2million has increased significantly. With prices in lower price ranges having dropped considerably over recent years, the gap between the first-time buyer areas and the luxury market has become huge. Search San Diego homes for sale to see for yourself. In another CMA that I did for Mission Hills, I found similar trends. What?s causing the buildup of homes for sale is that nothing is selling. I was amazed to find that only 2 homes have sold in Mission Hills for more than $1.4 million this year. This is in stark contrast to the last 5 years. You can view more stats on this at my Mission Hills real estate site. Due to the buildup of inventory and lack of sales, we are seeing a resulting drop in home values in luxury markets. It's a very simple supply vs. demand curve. A large percentage of all expired & cancelled listings this year has been in the upper price ranges. We are seeing more and more expired luxury homes in San Diego that didn't sell. Some come back on market and some just give up. We are now starting to see short-pay deals and bank-owned properties listed in the luxury market segment. With properties having lost close to 20% of their value, there are more and more instances where a homeowner is upside down or simply loses their home to foreclosure because of bad economic conditions. These are must sell homes, so they are priced accordingly and are beginning to drive the home values in the luxury market, as they have in other segments over the past few years. As you can see, the news for homeowners in our luxury markets is not good. Very few homes are selling unless there is a must-sell scenario. It will be these must sell scenarios that will continue to drive the prices down over the next 6-12 months. About the Author: Adam is a San Diego luxury specialist & marketing master. View a complete list of all San Diego homes for sale at his website or contact Adam for all your real estate needs. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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