San Mateo Home Sellers in Trouble #3

First of all, many thanks to Patrick of patrick.net for linking to this series. I have been reading Patrick’s site for about two years, ever since I contemplated buying a home. At that time everyone and their puppies were buying houses and I am so glad I found patrick.net and did not follow the mania. Anyway, lets talk about “luxury” homes.

So the definition of “luxury homes” vary from person to person. Some people say that it’s a house that’s big and some say that it’s a house that’s over a certain price level. Some also say that size doesn’t matter but the amenities inside has to be glorious. The following are a list of homes in decline that I believe qualify as “luxury” by normal wage-slave standards.

Address: 123 Fey Dr, Burlingame
Size: 3520 Sqft
Last Sale Date: 5/31/2006
Last Sale Price: 2,000,000
Current Asking: 1,998,000
Annualized Loss: -0.07%

Address: 3290 Longview Dr, San Bruno
Size: 2316 Sqft
Last Sale Date: 5/31/2006
Last Sale Price: 1,165,000
Current Asking: 1,149,000
Annualized Loss: -1.27%

Address: 3700 Kingridge Dr, San Mateo
Size: 2050 Sqft
Last Sale Date: 3/10/2005
Last Sale Price: 1,380,000
Current Asking: 1,379,000
Annualized Loss: -0.03%

From the looks of it the expensive luxury homes in San Mateo didn’t decline very much because the people that buy these have so much money that they don’t care. I think for me any of these homes would be way too much of a hassle and require a lot of cleaning and energy costs. I just want something around 1400 Sqft that is manageable and reasonably priced. It seems that for most people, just the act of buying a home is a luxury in the sense that they could rent a place for much less money. In some ways, luxury is equivalent to waste because there is no point in buying something you don’t need, or spending more money for something of the same value. When you are in San Mateo, I can almost guarantee that a rental unit is always going to be cheaper than a comparable unit for sale. I think these homes in the 1 million to 2 million range will sink a bit more due to inventory piling up, but I think the homes in the 10 million plus category will probably not sink very much. It doesn’t matter much because most people don’t care about the 10 million dollar homes. Most of us just want a little abode to call home. Is that too much to ask for?

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