Luxury Homes in Santa Rosa priced between the $1,000,000 – $2,000,000 price range have had a mixed bag of news. Sold homes are all over the board as far as values go. We are witnessing two types of buyers in the market, on one hand we have the local buyers that are in the market and refusing to write an offer until they feel a home is priced low enough for them to consider it a deal. For many of these buyers today’s low is not low enough. The fact that most of these homes are priced below today’s replacement costs does not seem to resonate with them. They are missing an opportunity of a life time.
Now of course in any market we have the optimists who know the local market and when they find something they like, they just buy it. They understand fully that they could be pulling the trigger a little early but having a home in the location, condition, and amenities they seek is important. They also understand that several years ago they would have paid hundreds of thousands more and that the price they are buying for today is below cost to build. This of course does not even take into account that it will be a long long time before we see high end homes built at the scale we saw in the 90’s. Just not that many places left to build.
Several recent sales to help you with the above paragraph. 1) 926 Quarry Point closed at $1,199,000 with multiple offers. Full price all cash. That’s $331 per square foot. 2) Currently under contract another home that has received a full asking price at $414 per square foot again a home priced over a million dollars.
For me this is reminiscent of the mid 90’s. Some of the local buyers purchased but most stayed on the sidelines. It was only after the buyers from silicone valley drove up here and purchased much of the inventory available under the cost to build before the local market jumped in. The majority of the best deals where gone.
Other news from the over $3,000,000 dollar market include all cash buyers from out of state writing full price offers. Some walking into offices without representation and yet others calling agents directly. Large multi million dollar properties are selling in Sonoma County with many transactions going unreported.