— Gus Kyriakos (@luxuryhomepro) December 8, 2014
Well the news about Luxury Home sales continues. In the Los Angeles area a home owner listed there house for $3.625 million and received seven offers.
WOW! This is fantastic news as apparently other areas are also experiencing multiple offers on Luxury Homes. Overall across the US Luxury Home sales have increased 7.2 % in March for homes One million or more.
See the Bloomberg article.here.
Its always exciting seen a project come to completion. This one is especially rewarding as the finishes and craftsmanship are first rate. It was well over a year and a half ago that my friend and client asked me about this property and I sent out a handwritten note to the owners that eventually resulted in a successful closing.
Now 18 months later this property is what I would consider a “Trophy Property “ Views of the Bay, Hardwood Flooring, Modern Finishes, roof Deck with Glass Rail for unobstructed views.
My oldest son happened to be along with me on a trip when the builder was picking the flooring and got him involved with which one of the dozen options to go for. Months later I brought my son along for another look and it was great to see his expression when he walked in the units and saw the flooring he picked.
This property is located on Leavenworth and is walking distance to the water front. This will be a hard project to duplicate as the market has changed dramatically in the past 18 months. My client who has decades of experience taught me a very important lesson. As bad and pessimistic everyone was about Real Estate this was the time for him to go out with me and make things happen. Even though I have been doing this for 20 years most of us including myself have not seen as bad downturn as this past one. It was another Life Lesson.
If you have a property in Russian Hill or any other desirable San Francisco location give me a call and I can put you together with my clients who also do remodel work. Need drywall work? Yes they are active in that business also. Residential and Commercial.
Lots of real estate news from around the country. California cities with reduced inventory are experiencing multiple offers across many price ranges.
Sonoma county Luxury Homes are on a recent tear with 29 million dollar plus homes entering contract in the last 30 days. That’s more than the 3 previous months combined.
So what’s now fueling this multiple offer market and renewed interest in Luxury Homes?
I can write a lengthy article here about buyers on the sidelines and pent up demand and lots of independent theories…..but I won’t. I think it’s quite simple..
Don’t Fight The FED!!! that’s it. It is common knowledge the banks are printing and that the FED is accommodative..and that eventually this will stimulate the Real Estate Market. Well it appears its finally working.
A client of mine that I represented in the purchase of a few buildings in San Francisco is just now putting up for rent the units he purchased and rebuilt in brand new condition.
These Russian Hill units have Bay views of Alcatraz and Golden Gate. The rents he is getting are up an astounding 35% from the time we did the analysis during the purchase phase and he has no shortage of renters.
My most recent buyer closing is one of the original iphone engineers and is still with Apple. Full price close in 30 days. Last time I wrote an offer like this was the spring of 2007. Many agents are experiencing similar situations and there is definitely a feeling of a market change.
Now of course this is all before the Facebook IPO which is slated for this week.
Who knows maybe the 29 buyers of the million dollar price homes are all the parents of some of the new young billionaires that will be born this week.
Pretty exciting stuff that’s for sure. Local News Here.
News of the pending Facebook IPO is having a very real impact in the Palo Alto Luxury Home market. Agents and local area buyers are concerned that with a shortage of inventory and with multiple offers already gripping the market that home prices could climb even higher.
A New York Times article by Michael Cooper goes into further detail.
In Santa Rosa Real Estate news the market inventory has definitely tightened up. It’s a little early yet but showings and inquiries for Luxury Homes are the highest in many years. I am receiving calls form agents throughout the county and Marin asking if I know of any new properties coming on the market.
One of our in house team of agents Charles Himes and Larry Tristano received 16 all cash offers on a fixer in Petaluma in early February of this year. The fact that ALL offers where cash is a very strong signal that the market could very well be on the road to recovery.
In another situation I was made aware that an offer of $30,000 above asking in a Fountain Grove home was not enough as another party offered more and put the home in contract.
Last fall I wrote in this blog that I believed that the Luxury Home Market values had bottomed in Sonoma County. With recent news of a pending Bank Deal with the State AG’s and the HARP 2 program that allows people to refinance with no CAP on the LTV (incredible) it certainly feels like the market could see some positive results this spring.
Unfortunately I do not have any Facebook employee friends….maybe I could Facebook Friend some of them….if I did I would be writing on their wall about what a great place Santa Rosa and Sonoma County are to spend some cash and buy a couple of homes for the price of one in Palo Alto.
This morning I ended up watching Ben Bernanke’s testimony until such time he mentioned inflation and transitory in the same sentence. I abruptly shut down my laptop and hit the gym. During my work out I reflected on my attitude towards the news and politics and came to the conclusion that I was just jealous that I could not have an audience to speak to and engage so as to be able to put certain words together so I can sound like I know what I am talking about.
I remembered that LuxuryHome.pro does have an audience as several hundred visitors visit this site monthly of which a full 25% + are local. When I run an adwords campaign traffic triples. A few years ago most of the Traffic was coming from New York, now its San Francisco…..New York is #7 in visitor’s traffic and #2 is Santa Rosa.
The first half of 2011 sales results are in with the following statistics. $1.5 million – $5 million closed sales for Santa Rosa are up approximately 35% from the same period last year. In the $1.0 mil to $1.5 mil closed sales are down 40% from last year. Entry level closed sales 100k – 400k identical to last year.
Values are down year to year with a noticeable shortage of available inventory. I believe this to be Transitory as our friends in Washington are prepared to be accommodative if necessary and have taken steps and have made plans to “Tighten” monetary policy if necessary.
Looking at the Santa Rosa Crystal Ball so to speak…….I believe that the bottom in values is in…..and what we in the field like to use as a barometer is under contract and pending statistics that are UP and the fact that the number of buyers looking in the Million plus range is up considerably.
Only question is…will they pull the trigger? If they do delay it will only be Transitory.
Luxury Home news from around the country and the world are definitely mixed. With some economies slowing down sales in those countries have cooled substantially.
In the US 2010 was definitely a buyers market as most buyers including the every affluent looked for good values. Though generally this group of buyers in the past simply bought what they wanted because they could afford to do so this recession has been so brutal that even the affluent either scaled back their purchases or in many cases looked for and got the most bang for their buck.
In Sonoma County this is very apparent in the 1 to 2 million dollar price range as the closed sales showed value purchases with an average sold price of 84.69 % of original list price. Average time on the market 6 months. A close look at the numbers reveals that the sellers that priced their home closest to what the market was willing to pay sold their homes with an average market time of 45 days at 100% of list. Out of 131 sales 12 of these homes sold for asking price.
Bay Area buyers are looking and buying if the price is right. Locally buyers are buying but many are sitting on the sidelines. Conversations with other agents led to remarks along the line of buyers not finding what they are looking for and overall inventory very light. Conversations I have had with buyers have led me to believe that some buyers are more motivated by price more than they are about finding the right home.
With interest rates on the rise and many sellers having taken their homes off the market it should be a very interesting spring market. If the Stock market continues on its upward path and rates staying firm or rising even slightly we could see price stability. As I have repeated before a positive Jobs announcement would be a good sign for all regardless if you are a buyer or seller.
LuxuryHome.pro web site visitor statistics for 2010 show some very interesting trends. The first 6 months of the year my highest visitor count came from the following cities New York, Santa Rosa, Los Angeles, San Francisco and Oakland.
The last 6 months Santa Rosa with the most visitors by a margin of 3 to 1 followed by Oakland and San Francisco.
Internationally the following countries in order of the most visitors. 1) US 2) India 3)United Kingdom 4) China 5) Philippines 6) Turkey 7) Vietnam 8) Thailand 9) Italy 10) Pakistan and 11) Canada followed by an additional 114 countries
On the upper upper nose bleed sections of Sonoma County prices 5+ million dollars the stories of multiple offers all cash continue.
If you are following the Real Estate Market than its not necessarily news that depending on the property and price range, multiple offers are part of the market. Vastly reduced prices on Short Sales and Bank Owned ( REO ) are the leading reason for multiple offers.
However just a few days ago I called clients on a new listing that came on the market and I set up the showing. Great house great location and priced well north of one million dollars. My clients thought that the home had many of the qualities that they where looking for and decided to write an offer.
I notified the listing agent who informed me that there was serious interest from several parties. Armed with this information the clients and I got together and talked about an offering strategy. My input was requested and I recommended FULL price and ALL cash. The buyers went with my recommendation and understood that there would be competition.
The offer was presented on the second day the home was on the market. A total of FIVE offers where presented with several above asking and several all cash. Multiple offers in this price range is not a shock to me as the property was well priced but I must admit I was a little taken aback when informed of FIVE offers. You would think with all the inventory on the market how did that many buyers converge on this same home? If you are a seller of one of these homes you are probably thinking the same thing.
In a past post I wrote Santa Rosa Luxury Homes about other homes receiving multiple offers, that buyers where active, and understood fully the great values today in the market. If you are a buyer today in the high end market don’t be surprised if you run into competition. The buyers called me back yesterday and wanted to see a home at a higher price range that was on the market at the begining of the year, it had come off the market and back on.
It was a beautiful storming wet day, the sellers where kind enough to let us in and the listing agent met us at the home. Prior to the showing we where told that the sellers where in negotiations with a prospective buyer.
If the multiple offers continue and many homes come off the market for the holidays, we could be looking at sellers demanding more for their homes in the spring. If you are a seller and have a home with views, room for an art studio and an outside living space easily accessible from the home without stairs I have the buyers. Prefer newer and in the Santa Rosa city limits. Price range up to 2 million. My cell 707-695-8811