Hi End Homes not recovering. But why? Don't be seen holding the trophy home!

I've just come off of having a trophy home listing. Literally NO homes sold in the area in over a $Million spread for over 6 months. $2M to $3M sales price, NOTHING. This in an area know for exclusivity, quality of life, and great schools. At any given time there were at least 2 dozen homes in that $Million spread price range.

We saw lending criteria for jumbo loans loosen and money become availble. We saw the lower end market pick-up significantly. We saw some sellers drop their price to what seemed like crazy rock bottom pricing. We all seemed to be chacing ourselves because there was NO MARKET. Very frustrating.

Even if you got an offer... how would we get the appraisal?

I saw this piece from CNN Money that says the high end market isn't rebounding and may take a couple more years to come around. Check it out:

http://money.cnn.com/2009/08/07/real_estate/expensive_homes_miss_recovery.fortune/index.htm?section=money_latest

In my opinion, there is one significant factor the article doesn't address. They mention the lack of demand. But, there are still people who can afford these homes. It looks to me like nobody wants to be seen holding the trophy home. In down times, it's better to stay under the radar. At least that's what it feels like to me.

Here is an example of what I'm talking about... an unnamed family member just bought a new BMW Z4 roadster. When they told me about the new car, they said.. "dont' tell anyone about it." .."we don't want anyone to know we bought it.".. "not with the down economy and people having financial troubles."

I think a little good news, good economic news, will bring the market back faster in the upper end. It may be starting to happen.

Let me know what you think.