Profile picture for lgalles

What has the market decline been in the last year for homes in excess of 2 million?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 19 2009 - Rancho Mirage
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (8)

Profile picture for Pasadenan
For "recently sold" in the $2+ Million range in Rancho Mirage, Zillow indicates 16 homes recently sold; but 5 of those are rentals recently rented, so only 11 in that price range recently sold.  Most recently sold was on 6/17/10; longest ago sold was on 7/31/09; thus 1 year of sales.

Sold prices varied from $2.14M to $3.65M

Taking one randomly at a sold price of $2.44M, it was purchase on 11/17/04 for $750k (empty lot).  Built 2008, completed approx November.

Listed for sale 11/1/09 for $3M ($2.999M).  Sold 2/2/10 for $2.438M.

That is an 18.7% drop from list price in less than 1/4 year.

Zillow now estimates the value at $2.514M.  But what is the real value?  Who has any clue?  It is what people are willing to pay. Did it increase in value $76k since sold?  If so, it was the $8k giveaway that bumped up the prices.

A 3% change doesn't even cover half the agent costs.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 01 2010
Profile picture for Pasadenan
There are 58 homes listed on Zillow for sale in the $2 Million plus range in Rancho Mirage.  Of those, 27 have been on the market for over 1/2 a year.  One of them has been on the market almost 2½ years.

Over $2 million in Rancho Mirage

One is priced at $75 million.
One is priced at $50 million.
3 are priced between 10 and 20 million.
5 are priced between 7.5 and 10 million.
4 are priced between 5 and 6 million.
4 are priced between 4½ and 5 million.
2 are priced between 4 and 4½ million.
7 are priced between 3½ and 4 million.
4 are priced between 3 and 3½ million.
12 are priced between 2½ and 3 million.
16 are priced between 2 and 2½ million.

Just looking at one in the 2 to 2½ million randomly, Zillow's estimated value (based on what recently sold curve fit to county record data) dropped from a one-year peak of $1.64M in August 09 to $1.25M in Feb 10; or 23.8% peak to trough drop.  Presently estimated at $1.38M indicating a drop from peak of 15.9%

But if one looks at 5 year trend... the peak of the market was October 2006.  Zillow estimated a value of $2.4M, Thus 47.9% drop peak to trough; 42.5% drop from peak to present.

Of course I don't think a house listed at $2.3M is going to sell for $1.4M.  The house will just be taken off the market.  The owner paid $1.455M in 2004.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 01 2010
Profile picture for Craig1976
Tough question because $2 million homes don't sell much anymore.  If you asked me what it would take here in Texas to clear all the MLS and shadow inventory within 365 days, I would say 65% decline from peak.  Only a major fire sale would get things back in balance.  Everything is going against that segment right now and everyone is a seller.

I predict ongoing, slow price declines and the excess inventory clears sometime late in the decade.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
July 01 2010
Profile picture for Pasadenan
Zillow's local info page for Rancho Mirage:
Upper tier median value trend (1/6 homes valued above), 5 yr

Looking at peak to recent minimum:
52.3% decline bottom tier
49.7% decline middle tier
37.5% decline upper tier

Using an exponential curve fit, that would place the drop for the $2M + homes at about 13%.

It is not at all clear that extrapolated value would be of any relationship to reality.  Home values do not follow a bell shaped normal distribution curve; there is little in that area in that value range, and the market shifts don't just shift the median, they expand the standard deviation of the mean when rising, and contract the standard deviation of the mean when falling.

I would be more inclined to believe 30% decline presently, and more to come.  It is proportional to how the market bubbled.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 30 2010
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 30 2010
"Homes in the 2 million plus price range have shown a decrease around 30%."

wait for it.... wait for it...


SO FAR!!! give it time!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 30 2010
That's a tough question to answer given the low number of homes sold in that price range over the past year.  The luxury market in the Coachella Valley has experienced a decline in value but not near the extent that the entry level homes have experienced of up to 50%.  Homes in the 2 million plus price range have shown a decrease around 30%.   
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 30 2010

oor

If you want a spacific area/city then a title co would have this info.Try LLawyers Title @
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
June 20 2009
 
Related Questions
AITD
Profile picture for Matt Horner
Latest answer by Matt Horner
February 08 2012 | 2 answers
explain the low listed prices
Profile picture for Harold Sharpe
Latest answer by Harold Sharpe
April 13 2011 | 3 answers
What has the market decline been in the last year for homes in excess of 2 million?
Profile picture for Pasadenan
Latest answer by Pasadenan
July 01 2010 | 8 answers
what is the best house facing in Rancho Mirage for sun exposure
Profile picture for Sid Kirkland, Realtor
Latest answer by Sid Kirkland, Realtor
March 09 2010 | 1 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 35090 Mission Hills Dr, Rancho Mirage, CA Home For Sale
    35090 Mission Hills Dr, Rancho Mirage, CA 92270

     For Sale: $189,000

    • Beds: 2
    • Sqft: 1596
    • Baths: 2.0
    • Lot: 1306
  2. 38131 Dorn Rd, Cathedral City, CA Home For Sale
    38131 Dorn Rd, Cathedral City, CA 92234

     For Sale: $99,000

    • Beds: 0
    • Sqft: --
    • Baths: --
    • Lot: 13068
  3. 899 Island Dr APT 511, Rancho Mirage, CA Home For Sale
    899 Island Dr APT 511, Rancho Mirage, CA 92270

     For Sale: $229,000

    • Beds: 1
    • Sqft: 1501
    • Baths: 2.0
    • Lot: 2178