The fact that so many CA counties with up-to-now hot housing markets made this list is an indication to me that many of these millionaires must have assets in second homes and investment properties.
My research was fine, my reporting was not. I apologize for not being more specific about distinguishing between oceanfront and not, or between house and not. My point remains – sales activities for oceanfront homes in north county areas and at the $2,500,000+ mark has dropped off the map over the last 9 months. Do we agree on that or should I be more specific?
Since these wealthy people have a 40% portfolio of real estate, and real estate is going down, so is their portfolio. I also wonder how their portfolio was assessed. It probably was a questionnaire, and the people said their $400K condo was worth $600K. I will be interested in the wealthy people survey of 2008, and how many wealthy will remain…
I hate to say it but I still vehemently disagree at least as my home turf goes. $2.5M is much too high a price point for North County Coastal areas as there never have been many sales at that price point. On Neptune there have been 2 to 4 oceanfront sales per year in the MLS at that price point the last few years.
Moving to South Carlsbad, there aren’t any (ZERO!!) oceanfront/$2.5M coastal homes. In North Carlsbad, there have been 2 oceanfront sales at $7M and $8.2 this Summer both RECORDS by a HUGE margin. There was also one for $2.65M on Garfield overlooking the lagoon. There was one for $5.75 in Summer 2005 and one on Garfield for $3.25M. Before that there was only one sale above $2.5M on Tierra del Oro (my favorite street) in 2004 and none before that.
I’m seeing huge sales numbers above $1.7M for new coastal luxury homes in Encinitas. Barrat sold 7 homes over $2M in Sidonia right off Encinitas Ranch Golf Course. The activity along La Costa Avenue West of 5 has been strong the last year. Sheridan Estates by California Cove sold 8 homes above $1.5M and there are a couple other infill projects at this price point right next door. Barratt is building another (Nantucket) right now.
Bugs, I think you are barking up the wrong tree. The class of homes being built and sold along Coastal North County barely existed prior to 2005.
There isn’t a need to make this a match of wits. The purpose of my question was to determine what happened in the last downturn with the coastal property values. SDR, do you know?
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