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Just getting around to posting this, but we had a cool spread over on Forbes.com this week. Altos Research helps Forbes track 500 most expensive real estate markets around the county. They publish the Forbes 500 Lux index each week and once in a while we dive into all the zip codes to see what’s happening at a local level.
While the median price of the broad index is down 7% year over year, that’s not the big story. The interesting thing here is where the demand is actually shifting to. The gist is that ultra-high-end luxury is getting hit much harder than the luxury-town-next-door – especially if they share schools and downtown areas. In the Bay Area, this phenomenon is evidenced by ultra-lux but creeking Hillsborough and next door slightly less exorbitant and quite vibrant Burlingame.
I shared this insight with Kym McNicholas in an interview at Forbes. Kym also interviewed Friend-of-Altos Marin Real Estate Agent Ginger Wilcox to see phenomenon in person in Ketntfield and Greenbrea in Marin County. Check it out:
More data for towns discussed in this post available here:
Hillsborough real estate market
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Very interesting. We’re definitely seeing this kind of price activity in areas in Florida. But there still are developers of mega mansions holding out for the “right buyer”.
Check out this home by Frank McKinney, http://www.frank-mckinney.com/acqua_liana.aspx
Listed at $29m two years ago and refuses to budge.
Most of our “lower end” luxury real estate from builders like WCI has been price cut and price cut until their single family homes and high rise condos found buyers. Buyers this year got a ton of value for their money.
Thanks for posting!
I love looking at those reports–always interesting to see what the luxury real estate market is doing.
We are seeing a similiar trend in the San Ramon Valley where homes in Danville and Alamo priced over $1,000,000 seem to be sitting and homes under $1,000,000 are moving pretty well. One distinction is that the homes priced over $1,200,000 also seem to be moving fairly well.
Luxury homes in Las Vegas are doing pretty solid, even considering the glut of inventory. High end custom homes are still moving!
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