Clark County has a wide-ranging selection of million-dollar homes, market has improved in recent years
Pool and tennis court in a picturesque outdoor setting in Camas or on a Vancouver urban estate with views of the river? It’s a million-dollar question, actually more like a $2 million to $3 million question. And housing options of the rich are not limited to these amenities in Clark County, as the number of homes selling for $1 million or more is on the rise.
Like all segments of the housing industry, values have increased, pushing a number of local properties past the million-dollar mark in the past several years.
There are currently more than 70 homes of $1 million or more on the market in Clark County. In 2005, 33 homes of $1 million or more were sold, versus 23 in 2004 and just 12 in 2003.
While activity is on the rise for luxury homes, Windermere Vancouver Associate Broker Mike Lamb notes it remains a drastically different market than the lower-end. Considering recent figures, the supply of homes more than $1 million represents a two-year backlog. In contrast, while inventory is up from previous years, there is a significant shortage of more affordable homes – below $250,000 – in Clark County.
Lamb said the luxury home market is less interest-rate sensitive, but other factors have influenced a greater interest in the local market. When the stock market dipped during the recent recession, Lamb saw an improvement in the upper-end of the market, as investors may have moved money to the improving real estate market, where returns were better. A cooling housing market may have the opposite effect.
"As rates rise, other investments might become more attractive," said Lamb.
Tax refugees from Oregon and those moving up by cashing in on rising values of the homes they were in before may have also contributed, he said.
Todd Johnson, president of Sunset Mortgage in Lake Oswego, Ore., finances luxury homes throughout the Vancouver/Portland area. He notes the Clark County and Portland high-end home market is not as lucrative as more desirable locations in the country, such as Bend, Ore.
"It’s a destination people want to get into," Johnson said of Bend. A recent Wall Street Journal article mentioned Bend as the sixth-fastest growing metropolitan region in the U.S., where second homebuyers are flocking for its nearby recreation opportunities, pushing prices up as much as 32 percent in the past year.
Johnson said Clark County has likely benefited from buyers moving from California. They can get just as much – if not more – in a $1 million home here than the $4 million to $5 million homes they sold before moving, said Johnson.
Despite the ability for many homebuyers in this segment to pay cash-in-full for these homes, many still seek financing for the benefits it can provide, said Johnson. Paying down a mortgage can reduce taxes, and, particularly when rates are low, financing a home frees up cash to invest elsewhere. But as interest rates rise, luxury homebuyers may put more money into their homes to keep monthly payments down.
As Lamb said, "If you have to ask, you probably can’t afford it," but, as an example, financing a $2 million mortgage would require a down payment higher then the median cost of a home in Clark County and a monthly payment of about $13,500.
The most expensive home on the market is a $4.25 million log home on Evergreen Highway. The 8,000-square-foot manse sits on a little more than 1 acre of Columbia River waterfront property. The four-bedroom, five-bath home was built in 1988 and includes an indoor pool, hot tub and elevator among its many amenities. The grounds include a waterfall and pond, and a 60-foot dock was recently added. The home’s annual taxes are more than $28,000.
The largest, a 13,000-square-foot, $3 million estate built in 1991 is also on Evergreen Highway. The two-acre property includes a pool and tennis court and views of the Columbia River. The house has been on the market since 2004.
There are a number of desirable locations in the county, such as Evergreen Highway and the shores of the Columbia River. Locations in Camas and Ridgefield are also fetching high prices, said Lamb. And whether it’s river or lakefront or rural acreage with endless views, property plays a key factor in price.
High-end appliances and fixtures come standard in this segment of the market, with special attention paid to kitchens, bathrooms and master bedrooms, said Lamb. The range of homes at the million-or-more price level is great, said Lamb.
The listings say it all. The homes are "exquisite," "dazzling" and of "unsurpassed quality." While amenities are typically "too much to list," they offer the "best of everything," from "ultra high tech" features to "old-world European craftsmanship." Not to mention the views, which are "expansive," "stunning," and "breathtaking."
