There’s an interesting article in the Long Beach Press Telegram today about high-end housing. Mostly homes over the $1 million mark. In Long Beach and Signal Hill, there are many ‘over a million’ homes. More so today than there was 5 years ago.
In 2001 there were 19 homes sold for 1,000,000 or more. Last year there were 189. The high-end market has continued to see double digit percentage price increases in these areas. As pointed out in the article though, there is an increasing trend in price negotiation on homes of high caliber.
Everybody who watches the Real Estate Market knows, that a million dollars doesn’t buy what it used to. There may be hope still, there is a cooling trend sparked by intelligent buyers who realize that their million dollars doesn’t get them the palatial mansion it once did. According to my buddy Dick, buyers are saying, “if I have to come down on my home, then I expect the seller to come down in price”. Recently a home listed for $1.5M needed a 100k price reduction in order to sell. At least 1.4 is a good haul for the seller, and most likely a good deal for the buyer too. In a few years that home may well be in the 2M area.
As the saying goes, (as repeated by a real estate parrot and showman) Buy the worst house in the best neighborhood, not the best house in the worst neighborhood.
For help negotiating your million dollar purchase please feel free to call on me. I’m happy to give some helpful advice and it wont cost a thing!