Record Million Dollar Home Sales for San Diego Real Estate Market, Will Homes Continue to Appreciate?

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According to NorthCountyLuxuryHomes.com, the San Diego County real estate market reached a record number of sales in 2005 for luxury homes (homes priced over one million dollars). The current market features over 2,000 homes actively for sale priced between $1,000,000 and $50,000,000. Over the last 5 years prices have increased 118 percent and six San Diego County cities are averaging sales over $1,000,000.

According to NorthCountyLuxuryHomes.com, the San Diego County real estate market reached a record number of sales in 2005 for luxury homes (homes priced over one million dollars). The current market features over 2,000 homes actively for sale priced between $1,000,000 and $50,000,000.

With four zip codes all currently averaging sales of over one million dollars and six zip codes with average single-family detached homes selling for over one million dollars, San Diego County is rapidly turning into a playground for the rich and famous.

“San Diego County real estate has always been known for its luxury homes, yet in 2005 San Diego County's luxury real estate market hit an incredible 3,336 total units sold, an increase of almost 20 percent over total sales in 2004 of 2,774 units,” said Bob Crain president of http://www.NorthCountyLuxuryHomes.com

Throughout San Diego County sales of homes over one million dollars accounted for 8.8 percent of all home purchases in 2005. Six San Diego County cities had average sale prices of single-family detached

properties for over one million dollars.

The most expensive San Diego County cities in 2005 were:

  • Coronado: 314 sales for an average price of $1,214,000 and homes appreciated 12.9 percent.
  • Del Mar: 210 sales for an average price of $1,231,000 and 17.9 percent appreciation.
  • Rancho Santa Fe (92091): 60 sales for an average price of $1,536,000 and an increase of 18.1 percent.
  • Rancho Santa Fe (92067): topped the chart with 160 sales for an average sale price of $2,487,000 and a price appreciation rate of 31.3 percent.

According to DataQuick Information Systems: 48,666 California homes sold for a million dollars or more in 2005, an increase of 47 percent from 33,107 units in 2004. The total luxury homes sold in 2003 was 19,080 and 13,871 in 2002,

“A million dollars just isn't what it used to be when it comes to San Diego real estate. We currently have over 2,072 homes listed for more than one million dollars in the San Diego MLS,” said Bob. Because of appreciation, low interest rates and San Diego’s draw as a retirement community, more homes are in the million-dollar category than was the case earlier.

How do people actually purchase these luxury homes?

All of the larger lending institutions are willing to provide mortgage financing for homes over one million dollars. Countrywide, Washington Mutual and Wells Fargo are the biggest banks that provide this type of financing. According to DataQuick, around 10 percent of the buyers paid cash, down from 15 percent in 2004. Of those who financed their purchase, the median down payment was 28 percent of the purchase price.

With San Diego County's amazing price appreciation, the incredible climate and the constraints on real estate development ... San Diego County will soon have many more zip codes with nothing but $1,000,000+ home sales.

http://www.NorthCountyLuxuryHomes.com
North County Luxury Homes, San Diego County's premier luxury home Web site is a full service luxury real estate company that provides both loans and real estate services for San Diego County buyers and sellers. They also offer the latest mapping technology to view all San Diego real estate listings on their unique San Diego MLS Map, Google Maps and aerial photos of every San Diego County real estate listing.

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