There are several reasons Sabino Mountain homes do not seem to be selling in the second half of this year. One is that there have been three recent foreclosure sales with final prices ending in the $200,000s. Appraisers have to examine these recent sales because they are no longer an anomaly. This has a huge effect on Pepper-Viner and Monterey non-custom homes that are for sale.
In the high-end market, buyers are looking to purchase homes at 2004 prices. Currently few Sabino Mountain homes meet that list price standard. So if the buyers can not find a bargain here, they go someplace else. Almost 100% of the luxury homes that have sold in 2010 have been bargains, and when one looks at past sales prices of the homes that sell, it is very typical to find the price almost identical to 2004 prices, and in many cases upgrades have been added such as pools, spas, major bath or kitchen renovations, yet still the closing prices are what we would find in 2004.
As a result, it makes sense that only those folks who are willing to list their homes at very aggressive prices, put their homes up for sale at this time. The alternative option is to lease the property for a few years. It is unlikely that prices will go back to the peak of the market (which was in the first quarter of 2006 )for a minimum of two years. We may be experiencing the bottom of the market, but we will not know that until after it has occurred.