Luxury home sales jump 21% in California
Original Post Date: February 12, 2011
By: Lauren Beale
Even the rich love a deal.
California homes priced at $1 million or more experienced a sales boom in 2010, the first increase in five years, even as overall home sales in the state declined, a real estate information service reported. The reason: High-end home shoppers went bargain hunting as certain parts of the economy improved but luxury home prices remained depressed.
Last year, 22,529 homes sold statewide for $1 million-plus, a 21% increase from 2009, according to DataQuick Information Systems in San Diego. In contrast, the total number of California homes sold last year dropped 9%.
“Prestige home buyers respond to a different set of motivations than the rest of us. Their decisions are less dependent on jobs, prices and interest rates, and more on how their portfolio is doing,” DataQuick President John Walsh said.
“When the financial world was full of uncertainty a couple of years back, and the jumbo-loan market dried up, luxury sales plummeted. As the economy started its top-down recovery, some wealthy buyers went looking for a bargain,” he said.