How are Sequim luxury home prices holding up in this market? Maybe only slightly better than nationwide. Los Angeles luxury home owners were proud that they were immune even well through 2008, but they just got hit with large discounts on multi-million dollars homes, many taking hits of 26% to 30% price reductions recently.
Luxury home prices tend to follow well behind the rest of the market. hat’s not unusual for the luxury home market. Buyers of luxury homes aren’t effected as much as the average person when the real estate market slows down, but in a tidal wave event like this one, even luxury homes are not immune.
“The median price of a single-family home in Beverly Hills was $2.1 million in the fourth quarter of 2008, down from $3 million in the second quarter, according to data prepared for the Los Angeles Times by research firm MDA DataQuick. The Pacific Palisades neighborhood closed the year with a median price of $2.2 million, down from a high of $2.6 million during the second quarter, and Santa Monica’s median was $1.6 million, down from $2.1 million last winter. The Brentwood neighborhood’s fourth-quarter median of $2.3 million was down 11 percent from its peak.” Read High-End Home Prices from the Seattle Times.
What’s happening with Sequim and Port Angeles luxury homes? Nothing, that’s the point, and that’s precisely why it’s a buyer’s market. At the upper end it is not unreasonable to clip off a $100,000 or more in this market in any offer. Of course, our luxury homes are not in the price range of the Santa Barbara or L.A. luxury home.
If you are in the market to buy a home in the Sequim or Port Angeles areas, I strongly recommend that you retain a buyer’s agent. Calling the listing agent and having the listing agent represent you as the buyer is like asking the agent to negotiate like heck to get the seller the highest possible price while at the same time negotiating like heck to get you, the buyer, the lowest possible price. When you think about it, it makes a lot of sense to retain an experienced negotiator as your buyer’s agent. See articles and video on Dual Agency Can Cost You.
Yes, I’m available as a buyer’s agent to a limited number of clients. Email me and let’s confer.[Chuck was a real estate attorney for 20 years and is a real estate broker and consultant now.]
Last Updated on January 6, 2021 by Chuck Marunde