Luxury Home Sales Trends In California

Overall home sales decline but luxury home sales rise for the first time in five years in California. Homes priced around $1 million and up experienced a sales increase in 2010 due to the current economic conditions. High-end home shoppers began seeking out housing, as the overall economic state improved while home prices remained the same. Looking at the numbers it becomes clear that this trend is one to last. 22,529 houses costing $1 million and above were sold in California, which stands for a 21% growth looking at the numbers from 2009. This stands in comparison to regular home sales, which decreased by 9% in the same time period.

DataQuick President, John Walsh, talked about the ways to approach and attract luxury home buyers based on their thought patterns and attitudes. “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.” They are smart enough to get good deals before the market can adjust to the rising incomes. “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 explained.

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