We’re not going to belabor the point, but regardless of your budget, we think it’s worth keeping an eye on the multi-million dollar properties we often feature on SocketSite.
The reasons stretch beyond design and decorating inspiration, beyond hints for marketing your property when the time comes, and beyond pure escapism. If for no other reason, keep in mind that the upper end of the market is often a leading indicator for the broader market in general.
Gathering accurate sales data for the upper end of the market, however, can be a challenge. Consider a note we received from a Realtor:
…the current trend among high-end realtors [is] to encourage clients to keep the sales prices of their purchases “confidential.” When this is done, the sale is marked as the listing price with an asterisk [in the MLS]. High-end properties (above 4 million) RARELY sell for full price. But realtors use the confidential sale stats in their analysis so the cost per square foot of many district 7 and 8 properties have been skewed.
This is not a trivial point. If the practice is prevalent, it not only skews MLS reported cost per square foot, but the median sales price (and implied appreciation) for luxury properties, and the reported “percentage over/under” asking for the market as a whole. And of course, it skews expectations.
Perhaps that’s part of the reason that half of the top 2% of active listings in San Francisco (ranging in price from $4,000,000 to $65,000,000) have undergone at least one price reduction. And that on average, these properties have been reduced by a total of 12.2% (a median reduction of 11.9%). Then again, it might just be the market.