We've been following some recent news regarding the high-end real estate market picking up in certain pockets across the country. For example, an estate in Miami just broke records for a single family home sale at $47 million, while New York and Silicon Valley keep making headlines. According to RealtyTrac, home sales of $1+ million are up 23% from one year ago.
Having seen a similar pattern here in Montecito, we decided to dig a little deeper to decipher our perception of the high-end market resurgence. According to the MLS, there was only one recorded closed sale at over $10 million in Montecito for 2011. Compare that to 2012, where year-to-date $10+ million sales already total 9. Montecito also had its first closing of over $20 million this year already.
Some experts explain the resurgence in closed sales by the drop in house prices, which have fallen 20% this year in the $1+ million range. Here in Montecito, we've definitely seen prices come down from their highs, but we've also seen some properties sell for prices above their previous sales price. Full price and multiple offers are also becoming the norm on well-priced homes in limited inventory ranges.