Luxury real estate in San Diego County is experiencing a significant slowdown, with homes priced at $6 million and above taking an average of 633 days to sell as of late May 2023. This duration marks a stark increase from the previous year, where similar properties sold in about 400 days. Homes priced between $4 million and $5.9 million are similarly slow, taking around 308 days, a dramatic rise from 147 days last year. In contrast, properties near the median home price of $750,000 to $1 million are selling much faster, averaging just 77 days on the market.
Experts attribute the sluggish luxury market partly to affluent buyers’ growing unease about the economy, particularly in light of President Donald Trump’s tariff policies. Steven Thomas from Reports on Housing notes that while luxury buyers may not be concerned about everyday expenses, they are closely monitoring the volatility of the stock market. “What they are doing is watching their portfolio all the time,” he remarked, indicating that fluctuations in the market directly affect their buying decisions. The environment of uncertainty makes potential buyers wary, often waiting for more stability before committing to high-value purchases.
The luxury sector is witnessing its lowest pending sales in over a decade, as reflected in a recent Redfin study that analyzed data from February to April. Within San Diego County, pending luxury home sales have dipped by 8.6% year over year, while national luxury sales have decreased by 9.9%. Redfin classifies luxury homes as those valued in the top 5% of the real estate market.
One of the most notable properties struggling to attract a buyer is the Sand Castle mansion in La Jolla, which first hit the market for a staggering $108 million in October 2022. The property garnered widespread attention for its asking price but has yet to secure a buyer since listing. Meanwhile, private equity billionaire Egon Durban made headlines with a $44.1 million purchase of a property in Del Mar in October 2023, which stands as the largest single residential sale in San Diego County history. Currently, there are three other listings that could surpass this record, but they are all yet to sell.
For current sellers, every day a property remains unsold represents a financial burden, with ongoing expenses such as property taxes and maintenance continuing to accumulate. While the impact may be less severe for sellers residing in their homes, ultra-luxury properties often function as vacation homes or investment properties, leading to higher carrying costs.
Typically, when mainstream properties linger unsold, it raises concerns regarding pricing or potential issues with the property itself. However, in the luxury market, Thomas explains, the limited pool of prospective buyers often necessitates a longer wait for the right buyer to materialize.
As of late May, a total of 3,573 single-family properties were available in San Diego County, with only 188 listed at $6 million or more. Among the available luxury homes, several notable properties have been on the market for over six months.
A recent high-profile sale in San Diego’s luxury market was the purchase of the Razor House in La Jolla by singer Alicia Keys. Her acquisition in the summer of 2019 for $20.8 million drew considerable attention, particularly due to the property’s iconic design, though it went through several real estate agents and took over a year to finalize.
Currently, there are 15 properties in San Diego County listed for $10 million and above, which have languished on the market for an extended period. Below is a summary of these properties, arranged by price:
The Sand Castle mansion in La Jolla, still listed for its original asking price of $108 million since it debuted on the market in late October. This grand estate, built by billionaire Darwin Deason, aims to replicate the Palace of Versailles and boasts a private beach, intricate stone carvings, and opulent interior design across 13,000 square feet. Deason, who made his fortune founding Affiliated Computer Services (later sold to Xerox), has reportedly placed this mansion on the market due to limited use.
Willow Creek Estate in Rancho Santa Fe initially listed for $100 million in August 2024, but after reducing its price to $84.9 million by March, it is still on the market. This 77-acre estate features a 12,000-square-foot main home, two-bedroom guest house, hiking trails, a 15-acre lake, and multiple recreational facilities, totaling 26 bedrooms and 27 bathrooms. The estate is owned by Art Nicholas, co-founder of Nicholas Investment Partners, who gained significant wealth from his former firm’s sale in 2000.
Another property, a beachfront mansion in Del Mar, is newly built and was initially listed for $75 million in November. At 2920 Camino Del Mar, this expansive property features 4,508 square feet in the main house alongside two guest homes and boasts one of the largest oceanfronts in San Diego County at 75 feet. The seller, Sandra Naftzger, intends to sell primarily because of her relocation to Los Angeles, as her family has owned the property since the 1930s.
The Coronado Bayfront mansion at 3 The Point has been on the market since November 2023 with an original asking price of $43 million, which has since been reduced to $37.5 million. This property offers panoramic views of San Diego Bay and includes expansive living spaces, a theater, and an impressive rooftop deck with a pool and a golf course. The property spans 11,715 square feet and features ample waterfront access, ideal for boating enthusiasts.
A gated estate in La Jolla, nearly 1.4 acres, is currently listed for $26.5 million. First hitting the market in May 2020, the upscale home has been featured on the market in various capacities since then. With modern finishes and amenities, it encompasses 11,404 square feet and boasts features like an 18-car garage and a luxurious theater room.
In addition to these significant listings, several other luxury homes are waiting for buyers in San Diego County, including:
– 5893 Winland Hills Drive in Rancho Santa Fe: Listed for $21.9 million since August 2023.
– 5465 Vista De Fortuna in Rancho Santa Fe: On the market for $14 million as of June 2023.
– 6884 Poco Lago in Rancho Santa Fe: Listed for $13.8 million since March 2024 following a price reduction in February.
– 5710 Dolphin Place in La Jolla: Listed for $12.5 million since May 2024.
As the luxury market grapples with economic uncertainties and impending price adjustments, sellers remain hopeful that the right buyers will emerge, patiently awaiting the opportune moment when luxury properties once again captivate prospective homeowners.
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