This morning as I was going through the new listings in Cache Valley, I noticed that two of the new homes for sale in Wellsville, were Ultra High end homes. I know that sales of existing large expensive homes is few and far between, but I didn’t realize just how bad it was until I ran some numbers.
For Cache Valley, homes above about $300,000 are generally considered high end homes. Homes above half a million are what I consider “Ultra high end homes.” Right now, Cache Valley has 44 homes listed that are priced above half a million. In the last 10 years, just 73 homes have sold, and 53 of these homes were less than $650,000. Homes more expensive than $650K have an even slimmer potential of being able to sell.
Twenty-Four of the current ultra high end homes for sale in Cache Valley are priced more than $650,000. Since the MLS started keeping track of statistics in the early 90’s, Cache County has only had 21 residential properties listed at more than $650,000 sell, and some of these actually sold for less than $650K. If the pace of these homes doesn’t pick up, we have about 20 years worth of real estate inventory. There currently aren’t any homes priced above $650,000 that are under contract.
I’ve been criticized plenty by local Realtor’s, and the local Realtor board for shedding negative light on real estate news, but we can’t deny the facts here. There’s no way to “sugar coat” the truth of the Ultra High end market. The fact is, sales of these type of homes are few and far between, especially in the current economy. There are few people in Cache Valley who can afford these types of homes, and few that want the responsibility of taking care of mega homes. In addition, many people who can afford mega homes choose to have them custom built so they will fit with their lifestyles and desires.
It’s sad news if you are a seller of an ultra high end home. It’s certainly not impossible, but the realities of you being able to sell just are not good.