Prices Dropping on Lamorinda & Walnut Creek High-End Homes

Sellers are cutting prices on the million-dollar homes in the communities of Lafayette, Orinda, Moraga (Lamorinda) & Walnut Creek.

According to the Contra Costa Multiple Listing Service (MLS) as of April 1, 2009 there are 467 residential properties listed for sale in the communities of Lamorinda & Walnut Creek. Of these properties, 180 units (38%) are priced above $1,000,000. Since January 1, 2009 only 35 of these million-dollar plus homes have entered into a purchase contract (gone pending) or closed escrow (sold) . That's an average of about 12 homes sold per month. At this rate, that means there's over 15 months supply currently on the market (a balanced real estate market typically carries about 3-5 months of inventory).

Although we're in the prime season for selling real estate, "move up" buyers who typically purchase high-end homes have seen the equity in their current homes & their stock portfolios crushed. Adding insult to injury, lenders have all but shut the doors on large real estate loans.

To get their homes sold, seller's are taking a page right out of the giant retailer's play book - they are cutting prices. So far this year, of the 17 homes in the million-plus price range which have closed escrow (Sold), the average discount from the seller's asking price has been 7% . On a percentage basis this may not sound like much, but it adds up to hundreds of thousands of dollars. And with only 20% of the existing inventory selling so far this year, and more units expected to hit the market, more price discounting is sure to come.

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