Consumers, after watching the crash of the housing market in 2008, are wary of another “bubble.”
Even those in the luxury market, who often purchase with cash and are less likely to be affected by mortgage rates, look for changes in the market with a cautious eye.
Professional real estate agents who are immersed in the day-to-day aspects of the luxury market have an in-depth understanding that goes beyond the statistics.
Andre White, a luxury homes specialist with the Cain | White Group at HÔM Sotheby’s International Realty, has been instrumental in the team closing more than $430 million in sales since January 2011. He said 2014 brought about a “return to normal” in the luxury market.
“After homes prices bottomed out in 2010 and moved sideways through 2012, 2013 was a momentum year, and prices rebounded as much as 25%,” he said. “Many of the luxury neighborhoods saw record sales prices, with some even eclipsing the peak in 2006. Multiple offers and bidding wars were commonplace, even at the high end.”
He pointed out, though, that any rapid increase, whether in the housing market or stock market, isn’t sustainable over a long period of time.
“A shift eventually took hold. At the end of the first quarter of 2014, we really started to notice a change in buyer sentiment.”
The first noticeable sign was a drop in the number of showing requests, he said. As buyers gradually became more discerning and resistant to new prices, and inventory levels continued to rise, agents started to see more price reductions, an increase in days on market, and a lower percentage of sale price to list price. Now, White said, buyers’ urgency has cooled, and sellers have had to adjust their expectations.
“While this may sound bad, what we’re really experiencing is just a return to a more normal, stable market.”
The overall number of $4 million-plus sales this year in coastal Orange County is in line with that of 2013.
Here are a few highlights from luxury sales in October:
Pointedly Perfect
The 2,800-square-foot custom beachfront home at 1117 E. Balboa Blvd. is near the eastern tip of the Balboa Peninsula. It sold on Oct. 14 for $6 million, under its August list price of $6.35 million.
The home has three bedrooms and 3 ½ baths, as well as French white-oak floors throughout, handcrafted light fixtures, and custom millwork. The kitchen features a Calcutta Marble island and honed gray granite countertops. An elevator goes up to all three levels of the home. The rooftop deck offers views of the sand, white water, the ocean and Catalina Island.
Built in 2014 by Orange County-based Graystone Custom Builders, it sits on a 2,400-square-foot lot near the boardwalk.
Carol Lee of Surterre Properties represented the buyer and seller in the transaction.
Lush and Lovely
The 5,000-square-foot home at 2 Gondoliers Bluff in Crystal Cove in Newport Coast sits on a private 0.41-acre lot that brings to mind a resort with its large swimming pool, a spa situated under a waterfall, outdoor fireplace, and built-in barbecue.
It sold on Nov. 3 for $5.1 million, under its August asking price of $5.3 million.
The lush landscaping, with its mature trees and LED lighting, creates a private oasis with oceans views. Inside, there are four bedrooms, four baths, a gourmet kitchen, a library with built-in bookcases, and a guest casita with a private entrance.
The sellers were represented by Sara Hinman of HÔM Sotheby’s International Realty, and the buyers’ agent was Brad Hinman, also of HÔM.
Extraordinary Living
The home at 78 Linda Isle in Newport Beach, situated on a 5,475-square-foot bayfront lot, is an example of classic French architecture combined with casual elegance.
The 5,033-square-foot, five-bedroom, five-bath home sold on Oct. 31 for $6 million, under its February list price of $7.2 million.
The property has been designed to reveal beautiful channel views from various levels. The home has custom wood doors, mullioned windows, intricate millwork, limestone floors and fireplaces, and coffered ceilings. The exterior patio with outdoor entertaining opens up to bayfront views and a 56-foot boat dock.
Cindy Wang of Supreme Investment Corp. represented the seller, and Diana Cheng of Country Queen Real Estate worked with the buyer.
