Will one of Orange County’s Eichler’s hit the magical $1M mark anytime soon? This is something we’ve been hearing a lot of lately. And it’s not just Eichler owners asking — but buyers, too. Over the last 15 years we have watched as the difference between Eichler Homes and surrounding homes has grown. As of right now, in most neighborhoods, Eichlers go for $150k-$300k higher than the surrounding homes of similar size. It certainly begs the question: Is there a limit and a hard-ceiling?
Something we have always loved about Eichler Homes is that, unlike a traditional tract home, there isn’t really a hard limit of over-upgrading. There will always be *someone* who is willing to pay the ultimate price for the ultimate Eichler. And there is our answer, plain as day. I absolutely think we will see $1M soon — in fact — there are currently homes in the three Eichler tracts that, if they were to come up for sale today, I believe would fetch more than $1M. But it has to be the right house.
So what is the *right* house? It’s everything that makes an Eichler special and everything that makes nice houses expensive. The million dollar Eichler is magazine-worthy. The million dollar Eichler does not have any unfinished projects. People do not buy Eichler Homes because they need shelter — there are far less expensive and more efficient ways to get more square footage. There’s an emotional response and some magic to Eichler homes. There’s a dream and maybe even a little bit of a fantasy. The closer a home is to that fantasy, the more it’s worth.
And that’s the problem with the homes currently on the market. They have the Eichler bones right, but not the execution. With that said, it’s a great time to be an Eichler buyer — there are numerous homes available.