Luxury housing market picking up after slow start
No expense was spared at Del Dios Ranch. The 210-acre estate in Rancho Santa Fe features an indoor swimming pool that looks like it belongs at Hearst Castle, a main residence with vaulted ceilings made of redwood milled on the property, heated marble floors and other meticulously planned details throughout. When the ranch went on the market in late February, it made national news, mostly because of its price tag of $92 million.
There were 779 homes in San Diego County that sold for more than $2 million in 2015, an increase of nearly 20 percent from the year before, CoreLogic said.
Still, a slowdown in sales at the start of the year had many worried. Real estate agents and some experts were predicting the market would cool as prospective buyers and investors in the U.S. and abroad weathered tumultuous stock markets brought on by financial trouble in China and parts of Europe, among other factors. But, the data show otherwise. Forty-three homes for $4 million and up have sold so far this year in the county, according to data from Steve Thomas of ReportsOnHousing.com. That’s three more than the same time last year. In 2015, 112 homes sold in the county for more than $4 million and 104 in 2014. Thomas said the luxury market started slow but is making up for lost time. He said an increase in available luxury homes for sale may make selling more difficult, but the market is just fine.
Homes costing $4 million and up were just 4 percent of all the homes for sale in the county at the start of May, according to data from ReportsOnHousing.com. Alan Gin, an economist at the University of San Diego, said there are just too few luxury homes to consider it an indicator of the economy.
“I think a better measure of the broad health of the economy of the housing market is the middle ground,” he said.
For the ultra-rich, there may be deals to be had, such as a 12-acre property in Rancho Santa Fe for $23 million, one of the most expensive homes on the market in San Diego County. It features a saloon, pool and water slide, a six-stall stable, pastures, tennis court, sand beach volleyball setup and other equestrian features.
A 3-acre property in Rancho Santa Fe sold for $4.1 million in January, $3.6 million less than it went on the market for in September 2015.
Source: San Diego Union Tribune