A recent Wall Street Journal article titled “Luxury Home Sales Bounce Back” highlights the San Francisco housing market at prices over $2 Million.
After a near-disastrous 2009, the luxury market appears to be making a comeback, driven by growing buyer confidence, improved financing conditions and more-realistic seller pricing. Despite the housing downturn, attractively priced homes in some of the nation’s most coveted neighborhoods are selling, sometimes fast and sometimes with multiple offers. Nationwide, sales of homes selling for $2 million to $5 million in the first quarter totaled 2,461, up 32% from a year before, says CoreLogic.
That sales are up from last year shouldn’t come as a big surprise. The shock of the financial panic in the fall of 2008 left many potential buyers too nervous to bid, and those who were willing to wade in found it hard to get financing. But a study for The Wall Street Journal by MDA DataQuick, a real-estate data provider, found that in some areas of the country, sales of homes over $2 million in the first quarter were actually on par with the levels of 2005, the peak year for existing-home sales volume nationwide.
On Kauai, however, the numbers don’t fit the national statistics quoted above. Looking at the first quarter of 2010, there were 3 sales above $2M. In the same 3 months of 2005 there were 16 sales above $2M.
For sellers who follow national news, this type of article can create a false perspective on our local market. It’s important to work with your local real estate expert and base pricing decisions on real market data specific to your property.
For buyers, that means now is still one of the best times ever to buy a luxury home on Kauai. There are more choices within this limited market segment, and prices are very attractive. Now’s the time to negotiate. For instance, this beautiful ocean view luxury home on Anini Vista was recently lowered to $9.6M – MLS 205189 / Photos:
Just days after publishing this post, the San Francisco Chronicle ran the following article;
Once again, conflicting news reports add confusion. For Kauai luxury home owners, it’s very important that you work with detailed market analysis targeted for your property and your area. Keep in mind that we are not yet out of this financial nightmare. The recent increase in number of sales is primarily at the bottom-end of the market, and not a sign that the luxury home values are on the rise. You’ll need to be realistic about your situation as well as the market. For a complete market update, and information on your options, please contact me.