Blog Post

The million dollar housing market in California may be gaining ground. The number of million plus homes sold in 2010 is higher than it’s been in the past five years and sales statewide have increased by 21% from 2009.

According to DQ News, statewide, 463 homes sold for more than $5 million last year. In addition, million dollar sales in Beverly Hills are up from 190 sales in 2009 to 256 sales in 2010. Similar trends can be seen in Brentwood, Malibu, and Pacific Palisades.

“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,” says Data Quick president, John Walsh. “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.”

Savvy buyers are looking for a deal and are motivated by the fact that many believe that home prices are at or near the bottom. They want to get in before prices start to bounce back.

Posted 1st April 2010 by Sally Forster Jones