There were 33 sales over $2,000,000 between 2003 and 2010 in Fairbanks Highlands, a gate/guarded community on the east end of Carmel Valley’s 92130. But with 10+ listings not selling over the last half of 2010, we thought that prices of these would keep sliding, hopefully all the way to $1,500,000.
But then on December 20th, a listing finally went pending – after 167 days on the market.
Here’s what has happened since:
Why would anyone need such a big house is beyond me. It really does not feel like home.
I wonder how much it costs to keep it cool in the summer. It is about time energy and resources cost more, we are too wasteful of them.
Jeez, that’s one long drive to get to a main road.
My mama used to tell me, “if you don’t have anything good to say, don’t say anything at all”.
The blogosphere seems to have flipped that 180 degrees.
Good living in the Highlands! Congrats to you and your client for having the patience to wait out the market and finally land one!
Thanks doughboy.
This seems like it should be putting some pressure on the typical CV tract home selling intin the low $1M’s-$1.3M — Squish Down.
here’s the sale history of the one selling in the $1.6 range.
05/10/2005 $2,225,000
06/14/2002 $1,800,000
06/16/2000 $1,337,212
If someone can get a resale for $1.5-$1.6, that would be a great buy. especially if the initial purchase price of a brand new house on 2 acre dirt in 2000 (which means the price was actually set in 1999) was $1.3. for a new house that size on 2 acre of dirt, you are looking at at least $300k in improvements. essentially you are looking at buying at nominal 1999 pricing, and at $600k off peak.
this is an absolutely fantastic price point.
casanova, in regard to the conventional wisdom regarding big homes and cooling cost:
#1: big homes do not trap heat as much as smaller homes.
#2: newer and higher end homes tend to have exceptional insulation, resulting in difference of 15 degrees compared to the outside temp.
#3: the splitting of the AC units up vs downstairs allow for additional savings.
having lived in several <2000 sqft SFR and currently living in a home much larger. I have to attest the summer cooling cost of our significantly larger house is actually LESS than the severeal <2000 sqft SFR we lived in in the past.
JtR: Puts me in mind of Alice Roosevelt (TR’s daughter) Longworth’s famous quote: “If you can’t say something good about someone, sit right here by me.”
cassanova you might as well ask why anyone would want to live in houses like Americans. You’d save a lot more money in a yurt, be able to send your kids to college and live like a king with the savings.
It also implies you don’t understand basic economics and that there are people with more and less money than you. They exist.
As far as the utilities–I agree that (in general) a larger new home that is built with new materials take less to heat/cool than an older smaller home–better windows, roof, insulation etc… 2nd (and more important), Carmel Valley is a VERY mild climate!
local boy, glad you mentioned the windows. this is especially true with the 80’s and 90’s crop of 2000ish sqft homes that have the huge tall panels of windows that would go from the 1st to 2nd floor in the formal living room, essentially trapping heat for the house like a greenhouse.
My mama used to tell me, “if you don’t have anything good to say, don’t say anything at all”
No wonder we end up with a hypocritical society where everyone has a fixed false smile on their faces never saying what they think. Where is the critical thinking in all of this?
Sdbri, there is a difference between living in a yurt and a 5000sqft home.
And not all houses americans live in are like that. Typical american family is 4 people, so unless you have an overinflated ego, want to continously caress it by inviting your friends to show your big house, there is no need to have 6 bathrooms and 6 bedrooms (unless you have a medical condition and need to go to the bathroom every minute…). We will eventually find out that bigger is not always better.
3.My mama used to tell me, “if you don’t have anything good to say, don’t say anything at all”.
Oh come on, you’ve had plenty of things to say about various houses where none of it was good (The Detroit River million dollar fraud house, the Scarface house with the Disneyland backyard, the Abomination house with 17 bathrooms, etc.).
I didn’t say I listened! 😉
Do you think the original owner of the REO house got away with the $600,000 that was the difference between he paid and what the house was sold for?
I have a feeling every one of the sellers at Fairbank Highlands had to bring a certified check (or wired fund) in the close neighborhood of half a million. Ouch.
To clarify.
The sellers had to bring in the deficiency close to half a million at the closing of escrows.
OK, I’ll say something nice – major street appeal, wide divided winding roadway, with landscaped boulevards running through in the middle. Beautiful landscaping everywhere, with lots of space between dwellings, for that extra margin of privacy.
looks like there’s a battle of dreamers and realists in the community. 3 are still asking for peak pricing of $2.1 to $2.35, while 3 are asking $1.65 to $1.8.
The 3300 sq ft 1965 single-story is cheaper to cool and heat than my last rental (ca. 1988 2 story 2000 sq ft). Besides, the ’65 regularly has 10-15 degree hotter/colder temperature extremes.
Of course, it’s apples to oranges. I put radiant barrier in my ’65 and a new 16seer AC/ 95% 5 ton furnace in my house and double-glazed low-e windows.
Houses are still just sticks and bricks. Closing up the holes is more important than the age… energy just wasn’t as expensive in the 60’s relative to incomes/cost of housing and the technology hadn’t developed yet.
Truly new houses (post 2004) that are built green are so energy efficient, that everything else pales in comparison.
Chuck
Anyone know why all the homes have the drainage ditches in the front yard? Have not seen this in any other SD neighborhood.
@OCRenter
I used to read your blog on a regular basis. It was one of the first of the bubble blogs and I used to check it as frequently as Piggington. However, I noticed an “invitation” is required to read it now. Any chance you would extend an invitation to a complete stranger?
just some guy, thanks for asking. I’m done with the blog. It served its purpose while it lasted. The last post was in ’09 or early ’10, quite a while back.
“looks like there’s a battle of dreamers and realists in the community.”
ocrenter, bingo…this is how human psyche works. Restaurants always put the steak and lobster as $20+ plates, and then salads at $16. Wow, salad, what a deal, only $16 compared to that $24 steak. Of course, the bigger profit is built into the plate full of lettuce and a few pieces of chicken, and their profit margin is slimmest on the steak. What is a $3 soda now, since your bill is running into the $60-70 range?
Those $1.5M-1.6M homes probably are having a run of bids because of this comparison phenomenon. Wow, what a deal, when homes are normally in the $2M+ range.
I recommend a great book that I read in the last 6 months called “Influence” by Cialdini. It talks about how people are persuaded into sales by little tricks. It was recommended by Charlie Munger.
Oh, they’re all just bitter.
I love it! Good looking home, not where I would have spent $1.6 million (Encinitas, RSF maybe)….but people are different and like different things. That and I don’t have $1.6 million to spend. haha
Congrats on the purchase….really a great looking neighborhood. I don’t like CV, but this neighborhood I’ve always liked. A planned community….planned right!
Nice buy.