Things were looking good for the luxury home market last year, and experts call for more of the same for 2016.
Last year saw 330 resale homes of $1 million or more sold on the Multiple Listing Service, said Forrest Barbee, corporate broker for Berkshire Hathaway HomeServices, Nevada Properties. That’s the most since the downturn in 2007. That does not account for the dozen or so lots that have been sold for custom homes, or the semi-custom homes and lower-end luxury homes priced at more than $500,000 being built in master-planned communities.
Dennis Smith with Las Vegas-based Home Builders Research Inc. estimates new homes priced at $1 million or more sold in 2015 numbers around 20. In the past year, he said, more traditional production homebuilders, such as KB, Ryland, Pardee, Pulte and Richmond American, are joining Wiliam Lyon and Toll Brothers in the luxury new-home market to diversify their products and “tap into that market.” He added that because of high land prices it’s harder for builders to provide homes in the lower price ranges.
Video: El Dorado Hills luxury homes