Northern New Jersey has long been a popular spot for rich and famous people looking for a secluded hideaway that is still within close proximity to New York. However, as The Hackensack Record points out, the combination of the credit crunch and the impact of dwindling stock prices on the portfolios of the wealthy have significantly slowed the demand for luxury homes in the area and caused prices to plummet.
This trend can be seen in the real estate sales of homes belonging to some of the area’s most public figures. Comedian Eddie Murphy’s 30-room mansion in Englewood, N.J. was listed in 2004 for $30 million. It is still on the market today, even though the asking price has been cut by more than half to $12.75 million. Hip-hop impresario Russell Simmons has also had trouble selling his 35,000-square-foot mansion in Saddle River, N.J. - it was originally offered for $23.9 million in 2007 but is now listed for $13.5 million.
The bottom line is that there is simply not the demand to meet the supply of luxury homes in the area. The New Jersey Multiple Listing Service, which tracks the luxury home market, reports that sales of multimillion dollar homes have fallen sharply in northern New Jersey since 2007. East Brunswick home appraiser Jeffrey Otteau estimates that there is a seven-year supply of properties listed above $2.5 million in Burgen County alone.
Along with a lack of demand, there is also a lack of financing. The credit crisis of 2008 limited the ability of everyone - including the very wealthy - to gain access to mortgages. Many luxury home sales relied on jumbo mortgages that were financed by mortgage-backed bonds which subsequently collapsed with the rest of the economy.
When you are an NBA player who has made $57 million in your career, it’s hard to imagine that radio and television commercials targeting people in danger of losing their home could be targeted at you. But that’s what Ball Don’t Lie says is happening to New York Knicks player Eddy Curry, as his $3.7 million home in Chicago is in foreclosure and he is in serious financial debt.
All of this information came out after it was revealed that Curry defaulted on a $575,000 loan to Nevada-based loan company Allstar Capital - a loan that featured a mind-boggling 85 percent interest rate. However, Curry claimed in legal filings that he can’t afford the $1.2 million he has been ordered to pay Allstar Capital because his financial situation is a mess thanks to an extravagant lifestyle.
Among the monthly expenses Curry racks up are: $30,000 for “household expenditures”; $17,000 to various friends and family; and more than $1,000 in cable and satellite TV. Certainly, it appears he has plenty of time to watch TV - he played in just seven games in 2009-10. Curry also owns 12 cars, although he is in danger of losing two Land Rovers and a Rolls Royce convertible to Allstar Capital.
In today’s economy, many Americans have been forced to sell their homes for significantly lower than their original asking price. If you fall into this category, take heart that you aren’t alone: this trend has impacted the real estate market from the top on down. As Forbes reports, even the most expensive homes in America have seen their asking prices reduced in order to sell.
One example is Le Belvedere, a sprawling mansion in Bel Air, California. Real estate developer Mohamad Hadid - known for developing five-star hotels for Ritz-Carlton - originally put the 10 bedroom, 14 bathroom estate on the market last year for $85 million. However, after he had trouble finding a buyer at that price, he was forced to reduce the asking price by more than 15 percent and cut it to $72 million. The tactic appears to have worked - the estate is now in escrow for an undisclosed price.
Another example is the Bootjack Ranch, a rambling property in Colorado. The ranch’s owners had to reduce the asking price several times from the original $88 million price tag. The estate sold earlier this month to an undisclosed buyer for $47 million - almost half of the original asking price.
How much would you be willing to pay for a home? How about $150 million dollars? That’s what Candy Spelling, the wife of the late television impresario Aaron Spelling, is asking for her 56,500 square-foot, English-style home simply known as The Manor. The sprawling Southern California estate recently topped Forbes Magazine’s list of the most expensive homes in America.
As you would expect, The Manor has some features that most homes on the market lack, such as a bowling alley, wine cellars and a room dedicated to gift wrapping. The 4.6 acre complex also has parking for 100 cars. However, even though that’s the asking price, the true value is set by the market, and the fact that The Manor has been listed as “for sale” since 2008 shows that perhaps even a house this opulent might not be worth $150 million.
A new estate making the list of most expensive homes this year is in Honolulu, Hawaii. The Kaiser Estate is the former home of American industrialist Henry Kaiser and was put up for sale last year for a price of $80 million. The estate is actually three different parcels of land that together make up 5.5 acres. Along with stunning views of Oahu, the Kaiser Estate features a 15,000-square-foot home and 12,000-square-foot boathouse and marina.
Sandra Bullock recently moved into a New Orleans mansion she purchased for $2.25 Million. he mansion, known as the Koch-Mays house, was built in the 1860s. It boasts 6,615 square feet, five bedrooms, four and a half baths, ornate chandeliers, and a lagoon-like pool in the backyard.
Several photos were posted on a real estate site prior to the sale which you could see here. She purchased the house last year in June, but moved there last month. She has since probably changed the decor from what you see here.
Sandra Bullock also last month announced that she had adopted a new baby since January. She is currently going through a divorce with her husband Jesse James.
While she is best known to the public as an Oscar-winning actress, Diane Keaton is also renowned in certain circles for the painstaking work she puts into restoring homes and other buildings. As a member of the America’s National Trust for Historic Preservation, she has interspersed her acting career with a number of preservation projects, fascinated by the beauty, eccentricity, and history that many older homes possess.
The latest project on her list is a Los Angeles home designed by architect Ralph Flewelling. Built in 1927, this home measures 7,145 square feet. It has nine bathrooms and seven bedrooms, with two of the bedrooms being in the master suite. There is also a separate guest suite. The dining and living feature thruway arches, while the yard sports olive tree-lined pathways and a pool. The 63-year-old actress has listed the home for $11,995,000.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=74f51b3a-6f3b-432a-b00f-e89d2daa8c8d)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=a1b44c0c-b4d7-4a8c-a0bc-03199ac9a397)