2/1/06 - January Home Sales in the Million Plus Market

What has the Million-plus club been up to lately? As of the end of January, there were a grand total of 200 homes listed in the County for $1 Million or higher, averaging an asking price of just under $2 Million. What were these homes like? Their locations were pretty much all over the map. The average size for these homes was 2,962 square feet, which equates to over $670 per square foot. All told, this makes for some pretty rich territory, right here in our back yard. So what do these figures mean? To put a context on it, we need to compare them to the activity of homes that have recently gone pending or sold. According to data I compiled from the MLS for the period between December 31 and January 31, a total of 12 homes closed escrow at $1 Million or higher in Santa Cruz County. Average asking price for these homes was $1,592,408, which was 96.6% of their original asking price. Final selling prices averaged $1,525,000, or 95.8% of list price at the time of sale. The highest sale of the month was the home at 6 Sanderling Circle in La Selva, which closed at $3,050,000. And on the average, these homes had been on the market for 52 days before they got an accepted offer. The fact that 30 homes over $1 Million went into escrow during the same period provides an encouraging picture. The average list price for these transactions was $1,749,367, despite a longer average time of 67 days on the market before they got offers accepted. It is interesting to note that asking prices for these homes were at 93.2% of their original list prices on the average, showing a proactive mentality amongst the sellers which may have contributed to the boost in activity. It is also worth noting that over half of the homes in escrow stayed at their original asking price, so it is not necessarily the case that it takes a reduction in price to sell a high-end home. During the same period, 57 homes were withdrawn from the market. 21 of those re-listed, leaving 36 sellers that for one reason or another have decided to not sell at this time after a grueling average of 137 days on the market. In the end the reason a home does not sell generally comes down to price, marketing or overall market conditions, and with market conditions looking up, it may be worth while for those homeowners to take a fresh look at the price or marketing strategy for their homes if they would still consider selling.