There are several reasons for the luxury home market’s swift acceleration since early 2012, including the strengthening economy, a decrease in inventory and the attention of foreign buyers, particularly those from Asia.
An increase in the number of investors is another reason, according to Gary Legrande, president of Surterre Properties Inc. Legrande said the stock market’s recent volatility has some investors looking for other places to put their money, and that the recent gains of the luxury home market have gotten the attention of some.
“Some people have taken their money out of the stock market and purchased high-end homes,” Legrande said. “And it makes sense. Luxury home prices are up 30-35% since 2008. Plus, there’s a lack of inventory in the highest-end market. Those who own those homes benefit when they sell. Currently, nearly all of the homes Surterre agents represent have multiple offers and come very close to full asking price—and in many cases, over asking price.”
Legrande said 35% of luxury transactions over the past year have been all-cash offers. Cash sales account for 75% of all transactions of more than $10 million, and most of the investors are individuals, not real estate investment groups.
A Complete Californian
The “refined California Craftsman” home nestled on the oceanside of Irvine Cove at 2500 Monaco Drive in Laguna Beach sold on June 18 for $7.5 million, under its March asking price of $8.2 million.
The 4,741-square-foot, four-bedroom, four-bath home has a vaulted, beamed-ceiling entry, limestone and pecan wood floors.
Stacked ledgestone terraces define the home’s exterior. There are two patios for entertaining, as well as a pool, spa and waterfall.
Rod Daley of Coldwell Banker P.I. represented the buyer and seller.
Take a Deep Breath
The 6,800-square-foot home at 41 S. Sur in Newport Coast boasts views described as “breathtaking.” Nearly every room looks out on vistas that stretch from south Laguna to the Pacific Palisades.
The residence in the heart of Crystal Cove has four bedrooms and 5 ½ baths and sits on nearly half an acre. The property sold on June 11 for $6.6 million, nearly reaching its May asking price of $7 million.
The arched walkway leads through iron and wood doors into a living area that has reclaimed wood-beamed ceilings, a custom mahogany built-in entertainment center and a floor-to-ceiling fireplace.
French doors lead to the backyard, which has a pool and spa.
Tim Smith of Coldwell Banker Previews International was the listing agent; Rex McKown and Marcy Weinstien of Surterre Properties represented the buyer.
Sumptuous Serenity
The estate at 58 Shoreridge in Newport Coast sold on June 18 for $5.4 million, nearly reaching its February asking price of $5.8 million. The six-bedroom, six-bath, French country-style home is 8,000 square feet and sits on 0.42 acres.
The home channels the look and feel of a French country estate, with weathered paint and walls adorned with textured finishes, along with tough plaster, stone, terracotta, clay, wood, wrought iron, glass and natural fibers.
Shiva Ommi of Ommi & Associates represented the buyer and seller.
Under the Tuscan Sun
The Shady Canyon estate at 27 Salt Bush evokes the feel of a Tuscan villa, complete with olive and citrus trees, a private, stone-lined portico and a central courtyard with a fountain. The home was custom-designed by its former owner and resident, a well-known Orange County builder.
The five-bedroom, six-bath home on half an acre has vintage European materials throughout, including stone garden paths, terracotta tiles, and hand-hewn hickory and walnut floors, as well as hand-painted Italian tiles on the spiral staircase.
The 5,810-square-foot home sold on May 30 for $4.6 million, nearly reaching its original April asking price of $4.7 million.
The buyer, who is from China, made an all-cash offer. Jacqueline Thompson of Surterre Properties represented the seller, and Yao-Ming Lee of R.E. Pros represented the buyer.
A Trophy Home
The Pelican Heights “Trophy” home at 1 Via Emilia in Newport Coast sold on May 28 for $4.4 million, under its April asking price of $5 million.
It was the first time the 2002 home had been on the market. The 4,805-square-foot, five-bedroom, five-bath home has 270-degree views from Vista Del Largo to Catalina Island, from the coastline to Palisades and from Fashion Island to Signal Peak.
Marcus-Kiwi Gualter of First Team Estates represented the seller, and Clara Chen of Prudential California Realty represented the buyer.
