FIRST GAIN IN GOLDEN STATE MILLION-DOLLAR HOME SALES SINCE '05

One interesting thing happened in 2010...the rise in million dollar sales.  Last year saw 22,529 home sales over $1,000,000 in the Golden State of California, which was a 21% increase.  Statewide, 463 homes sold for over $5,000,000 and the most expensive home sold, based on public records, was a 35,378 square foot, 15 bedroom, 7 bathroom, Bel Air property, which sold for $50,000,000.  Of the million dollar buyers in 2010, 29% paid cash.  Those that did choose to finance, the average down payment was nearly 40%.  That makes sense, as most lenders are unlikely to give an interest only or 5% down payment.  What that really gets back to is the buyer having some skin in the game.  Sharing an equal amount of risk with their own money, and pledging to protect their investment by repaying the borrowed money.  This is a concept that a lot of buyers across the country forgot, as everyone got caught up in free money fever.  As we continue to right ourselves in our economy, these upper end buyers lead the way not only in equity gaining traction once again, but also in their confidence to buy the upper end product, of that most American made product... our homes.