Housing Crisis Bummer: It's Costing The Super-Rich Millions

Enough with the poor people who got swindled by subprime loans.  What about the mega wealthy? How are they weathering the housing crash? Not swimmingly, actually.

Some sellers have been forced to slash the prices on their houses by as much as $7 million. And other houses aren’t selling for any price! 

Bloomberg: A 10,340-square-foot home in San Francisco’s Pacific Heights neighbourhood is for sale at $14.8 million, 17 per cent below last year’s asking price. A 153-acre property with a vineyard near the Napa Valley sold in February for $14.7 million, 8 per cent off the price last year. A home in Marin County’s Tiburon, a town where tennis star Andre Agassi used to live, was acquired in August for $900,000 less than the $7 million list price in 2007.

Those firesale prices are cutting into sellers’ profit margins: The seller of the $14.8 million Pacific Heights home will only make $8.8 million on the sale. Just $8.8 million!

To make purchasing a home more attractive, one seller is throwing in a $175,000 Bentley with purchase. That’s in addition to a $7 million price cut from $45 million to $38 million.

The mansion sits on 7.5 acres in Los Altos Hills, a Silicon Valley town where Yahoo! Inc. co-founder and Chief Executive Officer Jerry Yang also lives. It boasts a wine cellar, Venetian- inspired ballroom, Italian statuary and swimming pool. At the reduced price of $38 million, the property is a bargain, the owner says.

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