Sacramento, once considered a pit stop by Bay Area Residents on the way to Lake Tahoe, has started to enjoy a spillover of the luxury property market thanks to the Silicon Effect, professional sports, and the growing economic impact of the region. The number of homes selling for above $1M has increased exponentially with a strong uptick this year alone. There are over 200 homes in the Sacramento region which are for sale over $1M as I write this. Over 100 sold since the beginning of the year. Remember Demarcus Cousins? Former NBA King’s player? He got “transferred” so he had to move. The six bedroom / 8 bath house is listed for $5,399,000 boasting almost 14k square feet of living space along with many luxury amenities. The house in Granite Bay is already pending. How about The Sawyer condo downtown, across from the new arena? It just sold last week for asking…which was $4.1M after being on the market less than 6 months. This luxury condo of three bedrooms / 3 baths sold for $1,233.82/square foot with 5 star amenities such as a valet, concierge, doorman, private owner’s lounge, fitness studio, and access to the Kimpton hotel pool. The HOA fees are only $4,021/month. Luxury means different things to different people. If LOCATION (Location, location) are important to real estate pricing, how does Sacramento’s location affect perceived value? Consider proximity to the higher priced San Francisco Bay Area and the advantage of buying more for less in COMPARISON. Luxury exudes the mystique of being exclusive or unique, it possesses a spectacular view or location, maybe there’s an affiliation to fame, or it may whisper (or exclaim) affluence. The definition is not specific but is usually influenced by the following:
- Highest Price Range for the area – In Sacramento, the luxury market can start under a million dollars (some say $750-900k), but most acknowledge that a million-dollar home marks the beginning of the ascent into the luxury strata.
- Primo Location – External to the home, the geographic location may offer spectacular views of the Sierras, Folsom Lake, or a view of Downtown. The desirability of locations change all the time! Consider how the J Street condo which recently sold for $4.1M became a coveted location because of the new Golden One Arena. J Street wasn’t previously known for its high priced real estate. In fact, it was kind of seedy as the Downtown Galleria mall declined before the arena.
- Premier Quality – Construction materials, details and finishes, appliances, and design all feature exceptionally elevated taste above the standard or even the upgraded. Hard to find or rare is a hallmark of premier if used with high-end design aesthetics. Consider the new design center for the new Scavolini design showroom in Roseville that features novel and beautifully constructed designs for the connoisseur of European Contemporary Aesthetic.
- Luxe amenities – A private Cryochamber! 15 car garage. Fully equipped commercial-grade gym. Pampered movie theaters or bowling alleys. Featured as an award-wining architectural or interior design has its exclusive advantage. Understand though that once there’s an adoption of trends, the trendsetters move on.
- Lavish – be it a one of a kind gourmet kitchen or designing an indoor/outdoor seamless integration. Think architectural perfection where even Steve Jobs might have given a nod to design beauty.
- Historic – does the property have some connection to some famed event or person? The association to something or someone positive connotes value. There is a register for historic places in Sacramento County (not limited to houses). I found that while researching this blogpost that there is a law on the books called the Mills Act which if a property is recognized and registered as an historical property and is then encumbered by an “Historical Properties Contract” between its owner and the city or county, it may also be entitled to property tax reduction.
- Acreage and/or exceptional home size- If you’ve got it flaunt it, right? Some want to show the fruits of their labors (or their good fortune). Finding a home with land mass between your home and your neighbor’s inflates the value. Factor that in with an upscale home of good bearing add dimension along with a desirable location and that begins to assuage the appetite of the upper tier.
The price tag does not sell the property though. The former Eddie Murphy property which sold in Los Lagos for $6.1M in 2007 was not ready for a new buyer at $12M last year. Sometimes the value of luxury is in the eye of the beholder and the in the depth of their bank account. For your perusing pleasure, I have included a link to homes currently available above the $1M mark in your desired location: Sacramento Carmichael Granite Bay Loomis El Dorado Hills Folsom Auburn Lincoln If you have a desire for luxury OR you just desire premier representation, feel to reach out.