Over the past few weeks we've looked at a few homes in Healdsburg priced around $2 million (here and here).
For that reason this post caught my eye about a 15-bedroom, 17-bathroom, 16,330 sq. foot home near San Diego that failed to get even one bid at $2.275 million.
There are a couple of lessons here: A) Just because you put money into a place doesn't mean you will get it back (this place cost $10 million to build) and B) Price declines around California are going to catch up with Healdsburg. Sure, Healdsburg is nice. But if someone were really looking to spend $2 million on a home an extra 14,000 square feet might get them to sacrifice location.
Here are the details (via Patrick.net):
It’s a bad sign when a new home that cost more than $10 million to build fails to attract even a single bidder at a foreclosure auction.
Yet that’s what happened Feb. 13 when Chevy Chase Bank put a 15-bedroom, 17-bathroom Encinitas property on the block with an opening bid of $2.275 million. The 16,330 square-foot home, which has a library, yoga room, swimming pool, fountains, lush landscaping and much more, is described by local foreclosure experts as the county’s current largest home foreclosure.
Why would this place not even get one bid? The description makes it sound like it is worth more than $2 million dollars.
ReplyDeleteThere might be something wrong with it where the new owner would have to spend even more money.
And consider what $2M will currently bring in metro areas (with jobs) such as Seattle, Portland, Denver, or Phoenix? Of course, today this price point is unattainable by even many highly-paid professionals, and yet I've mediocre homes in Sonoma above the $1M mark.
ReplyDeleteJim The Realtor's videos have been a joy.As far as local prices,errm.The pool of people who can afford a $2mm house has shrunk a bit.The requirement for 30% down and a clearly declining market means people actually have to think about their decision for a moment,and the usual response is "let's just lease it for $10 k a month and see how we like it"
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