If you’ve dreamed of owning a million-dollar home, the time is now. According to the Zillow Home Value Index (ZHVI), high-end homes in the U.S. are now listed for 27 percent less than their prices at the peak of the market in June 2006. That translates into hundreds of thousands of dollars in savings — and the possibility of buying a million-dollar home for, say, $500,000.
Los Angeles real estate agent Gary Gold of Hilton & Hyland confirms most of the homes in the million-dollar bracket are selling for a third less than the peak market price — and that many of his clients are taking advantage of the discount.
“The [luxury] market is solid; people are buying for sure,” he said. “In general there aren’t too many people that say ‘let’s wait until prices get lower.’ ”
Gold emphasized that not all real estate markets are the same. While average prices are down 30 percent across the U.S., some of the higher-end homes in New York or San Francisco are still selling at strong 2006 prices, and properties elsewhere can be found listed for even lower prices — up to 50 percent off.
“Real estate is very local and every neighborhood is different. Every situation is different. There are certain things that are selling from zero to 50 percent [off] depending on the situation,” said Gold.
Why such a significant drop in prices? According to Gold, these homes may have been overpriced when they sold in 2006, or they are now located in a real estate market that is no longer considered high-end. Below are seven homes currently found on Zillow that were once priced in the million-dollar price bracket when they sold in 2006 but are now listed at prices 48 to 52 percent less. And no — these are not distressed sales (foreclosures or short sales).