Million-Dollar Homes Are Still Selling Well : Home Resales: Expensive houses are unaffected by the slowdown. About half the sales in state were in Los Angeles County.
While sales in some segments of California’s home resale market have slowed over the last six months, the very expensive homes are selling well, according to a San Diego-based real estate information company.
During the first three months of 1990, a total of 685 homes were sold for more than $1 million statewide, Dataquick Information Systems reported.
“This is a portion of the market that has its own personality,” said Mike Ela, Dataquick vice president.
“While home sales overall are strongly influenced by normal market variations such as interest rates and seasonality, sales trends at the very high end of the market follow their own set of rules,” he said.
About half the homes that were sold for more than $1 million were sold in Los Angeles County, most in the Malibu-Santa Monica-Beverly Hills area, according to Dataquick.
The most expensive home sold during the first quarter of the year was a 13,423-square-feet mansion in the Bel-Air-Beverly Hills area, which went for $9.25 million in January. Built in 1935, the home has 15 bedrooms and 10 bathrooms.
Other California communities with significant sales in the million-plus category were La Jolla, Santa Barbara, Hillsborough, San Francisco, Newport Beach, Laguna Beach, Palos Verdes and Indian Wells.
The Dataquick survey does not include newly built homes, nor does it include homes located on commercially zoned property. The survey does include some modest homes situated on valuable lots. These are often bought and torn down to make room for a new residence.
Roughly two-thirds of the homes, a total of 449, were sold for between $1 million and $2 million. A total of 87 were sold for between $2 million and $3 million, and 31 of the homes went for $3 million to $4 million. A total of 21 sold for $4 million and up.
A sales price was not available for 90 homes, although it was determined that they did cost more than $1 million. About one-third of the new owners bought their homes for investment purposes or as a second or third home.
More than 30% of the buyers paid cash. In more middle-of-the-road California home markets, the percentage is around seven.
WHERE HOMES SELL FOR MORE THAN $1 MILLION Areas with homes selling for more than $1 million from January through March of 1990. Number Most Area sold expensive Los Angeles/Bel-Air 67 $9,250,000 Beverly Hills 41 $6,250,000 San Diego/La Jolla 30 $4,700,000 Pacific Palisades 23 $4,300,000 Newport Beach 23 $3,400,000 Santa Monica 22 $2,850,000 Santa Barbara 20 $4,200,000 Malibu 19 $3,657,000 Hillsborough 18 $3,500,000 San Francisco 16 $3,300,000 Palos Verdes 14 $2,630,000 Laguna Beach 12 $3,400,000 Pasadena 11 $1,950,000 Indian Wells 10 $2,900,000 San Rafael 10 $2,650,000
