Discounts In the California Real Estate Market Or Just the Waydown?
The ultra rich are finding discounts in the California real estate market. Jeff Paster, a luxury home developer out of California’s Marin County, failed to find a buyer for a brand-new waterfront mansion that he listed for $45 million. Instead, Paster will wait until an auction this weekend, where the starting big is set at $25 million. This has been the trend for California luxury homes, and very little is pointing towards a recovery in the sector for California, especially in light the CABs. The aforementioned Marin County houses on of the districts that took out the CABs.
In 2012, the San Francisco Bay area luxury properties have sold for discounted prices to the listed prices, as many homes are sitting unsold for years before finding buyers. Many are celebrating the social media market as a way of pulling the Bay Area housing market out of its doldrums, but the performance of most of these companies demonstrates that they cannot be depended upon to close any shortfalls in other parts of the economy.
Earlier this month, Jay Paul the San Francisco-based developer of 6 million square feet of Silicon offices, including Google Inc.’s four-building complex in Sunnyvale, purchased for $28.25 million. The deal was a 48 percent discount off the asking price in 2007, around the northern California’s peak. The seller had recently sought $34 million.
Luxury discounts are in part thanks to sellers motivated by higher capital gains taxes in 2013. Lower end luxury homes are discounted, too. A Twitter co-founder recently paid $9.9 million in February for a two-bedroom house in Sea Cliff that had been previously listed for $12.5 million.
The late summer 2012 saw detailed reports of social medial websites going public that should not have. Overvalued and shorted by keystone Wall Street insiders, one company after another saw failed public offerings.
A recent report from the Mercury News showed that both national and California real estate trends are shifting in favor of more practical designs catering to baby boomers wishing to downsize, first time homeowners without much in savings and, a more recent trend for the US, multigenerational families in need of flexible living environments.
According to the Mercury News report, many homes are today being built with multiple generations in mind, and including separate quarters, cottages or detached units for aging parents or adult children without sufficient work to live on their own.