Sales of homes priced at $2 million and above rose 18% in 2010 as compared to 2009: 252 luxury homes found new owners in 2010 as compared to 206 in 2009. This is particularly encouraging when one considers 2010 was up versus 2004, which saw 241 homes trade when the market was on fire. In fact, back in 2000, only 177 homes over $2 million sold, 30% lower than 2010’s volume. Clearly the luxury market is coming back stronger and healthier than it’s ever been.
The luxury neighborhood that has shown a surprising amount of movement has been Sea Cliff, where 10 properties sold in 2009 compared to 22 in 2010.
The unprecedented supply of inventory has been the cause of prices trending down, so if you’re looking for a bargain, shop Sea Cliff. In 2010 only 2 homes sold in Sea Cliff for under $1.6 million, in 2009 there was only one, and in 2008 there were none. 2011 to date, only two homes in this price range have been on the market.
Given the strength in the $2 million dollar category in Sea Cliff, it’s possible that sellers are transitioning to other more expensive homes. Currently, Sea Cliff is the favorite place to find a high-end bargain.
The reverse trajectory is also in evidence: there is currently a $5.4 million home in Pacific Heights on the market because the owners found their “dream home” in Sea Cliff. 2737 Divisadero was reduced by half a million dollars recently and is a lovely home. The nearest sold comparison is 2800 Vallejo which sold for $4,775,000 in November. The half million dollar difference between these properties could be owed to the elevator and design features in the Divisadero home.
Currently active on the market is the premier Gold Coast mansion 2701 Broadway (at Divisadero): 7 bedrooms and 7 baths in 16,400 square feet (aprx). This completely restored home is quietly holding its ground at $32 million. An infinitely livable floor plan with stunning views, this home features 2 family rooms, 2 offices, 2 kitchens, 6 fireplaces and a basketball court at the ready for a quick pick up game. A commercial speed elevator services all 5 floors. Easily twice the size of the typical home in this neighborhoo,d the most clever aspect of this property is the degree to which it is understated.