Taking a look at the niche known as affordable-luxury – homes valued in the $1 million to $3 million range – the real estate marketplace is much different than for homes priced below this threshold.
We commonly refer to markets in their entirety and often forget there are segments of the markets that function differently than the whole. Sonoma County's real estate markets have a distinctly different mood in the higher end – homes priced above $1 million – than the balance of the marketplace.
This segment of the market typically sees a higher price paid per square foot (PSF) for a home than the sub-million-dollar market, as the properties tend to be more embellished with features like designer pools, larger manicured yards, views and uniformly more desirable, custom finishes while being located in the most preferred neighborhoods in the county. In Sonoma County, at October's closing, the average sale took place at $615 PSF for a home in the $1 million to $3 million range, versus the entire county reporting at $462 PSF. That's a 33 percent premium that buyers are paying to gain access to the accouterments found in this echelon of the marketplace.
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