The luxury market is a unique animal that responds to its own set of economic parameters.
Buyers in the segment aren’t necessarily bound by job growth or interest rates as those in the broad real estate market often are.
Rather, stock market performance and initial public offerings play a much more important role for high-net-worth buyers, according to housing data aggregator DataQuick.
Luxury homebuyers are flush with money to spend, with the stock market consistently at near-record highs for the past five years. The results are evident along Orange County’s coast, as well as in the broader market.
“We call this the cross-market domino effect,” said Sharran Srivatsaa, president and chief operating officer of Teles Properties in Newport Beach. “The importance of the high-end thawing should not be marginalized. … It will do wonders to rebalance the rest of the market and consequently create healthy sub-segments all around, providing options and opportunities for move-up/move-down buyers and sellers alike. We are starting to see this happen actively in the OC market.”
Srivatsaa said that in May, the median price in the $3.5 million-plus market was up 5.3% compared to 7.3% for the broader market. The average price per square foot was up significantly on the high end year-over-year—24.5%—and by 7.4% in the broader market.
“This is good,” Srivatsaa said, “because you are starting to see [the markets] move in tandem, which shows more health and robustness in the market.”
Living it Up in Laguna
The custom 11,722-square-foot oceanfront home at 2675 Riviera Drive in Irvine Cove sold for $23.6 million, under its October list price of $28 million.
Rod Daley of Coldwell Banker Previews International and Andy Stavros of Teles Properties represented the sellers and buyers, respectively, in what was the largest public home sale in Laguna Beach since June 2009. The transaction closed June 16.
The four-bedroom, eight-bath home is on Abalone Point, perched atop a cliff that affords it panoramic views from almost every room.
It conveys a modern sensibility, with floor-to-ceiling glass walls, cathedral ceilings, travertine and French limestone flooring, and cabinets, doors, and moldings made from old-growth teak. Los Angeles-based designer Darrel Schmidt, who also was the mind behind the Four Seasons Hotels in Kona and Maui and the Pelican Hills Resort in Newport Coast, designed the interior.
The home includes an elevator to all three levels, as well as a den, library, great room, bonus room, family room, gym, home theater, private office, and wine cellar. Highlights include seven custom fireplaces and a full-house audio system. The home has a Lutron electronic system that controls lighting and window shades.
The west-facing home sits on .39 acres and has panoramic views. Lawns, terraces and gardens surround the swimming pool and spa.
South Bay Stunner
The three-bedroom, 3 ½-bath, 3,180-square-foot home at 518 S. Bay Front in Newport Beach sold on June 10 for $6.5 million, under its March asking price of $6.85 million.
The home was completely redesigned and remodeled in 2008 by Newport Beach-based Patterson Construction. The open-plan kitchen boasts Carrera counters, custom cabinetry, and top-end Dacor, Miele and Subzero appliances.
A sliding glass wall opens the great room to the bayfront patio, which has water and fire features. Outside, the view includes the beach, white water, ocean, and the Balboa Pavilion across the bay. The rear patio features a waterfall wall.
Steve Sutherlen of Coldwell Banker Previews International represented the seller, and Sue Young of HÔM Sotheby’s International Realty represented the buyer.
Santa Barbara Style
The six-bedroom, eight-bath, 8,300-square-foot home at 32 Black Hawk in Irvine sits on .77 acres in the guard-gated Shady Canyon community, an excellent example of elegant Santa Barbara style, with cherry wood floors, custom-made Beiber French doors and windows, rustic ceiling beams, dark wood moldings, and built-in cabinetry.
It sold for $6.1 million on June 13, under its March asking price of $6.3 million.
The home also has an office, game room, and a wine-tasting room. There’s also an Elan surround-sound system, a security system, and more than $1 million in professional upgrades inside and out.
Clara Chen of Berkshire Hathaway HomeServices represented the seller, and Calvin Gong of Re/Max Advanced Realty represented the buyer.
