Inquiring minds are taking in a slide presentation on CNN.com showing million dollar plus homes and their discounts. From one real estate analyst:
Million-dollar homes are the most affordable they’ve been in years. In fact, $600,000 is the new $1 million, according to Alex Villacorta, senior statistician for Clear Capital.
What a line…and so true.
Remember how a few years ago the better off were saying, “The people with money will always have money!”? When was the last time you heard that?
Even the wealthy need mortgages. And try obtaining a mortgage for more than $800K. Anything above that and the buyer has to come up with CASH, a commodity in short supply these days.
How’s this from Palm Springs?
Description:When this modern Mediterranean was built in 1946, Palm Springs was in its golden age, with Hollywood celebrities flocking to the city.
This 5-bedroom, 5.5-bath house went through a complete remodeling in the 1980s and has since been well maintained. The 4,600-square-foot home’s most dramatic feature is a solarium with a full bar and 45 feet of sliding glass that opens onto the garden and pool. There’s also high ceilings, a maid’s quarters, a guest house, and mountain views.
A few years ago, a large, well-built house like this would have sold in the $1.5 million to $1.6 million range, according to agent Ben Leaskou but the housing bust has taken the price down to a very reasonable level.
Price now: $1.15 million for a 28% discount.
With 58% of the nation’s Alt-A loans (Stated Income, Jumbo Prime, & Negative Amoritization) in the state of California, watch out during the next 14 months (Jan 2011) as these are to reset:
Most people in Southern California do not realize that the city which values fell the most in the last downturn was…Newport Beach with a 60% decline.
Click here for the slide show presentation.
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