Buyer snaps up ‘slice of heaven’ in Sacramento home market. Are luxury prices on the rise?
A resort-style, Sacramento-area home with just one owner since it was built in 2001 recently sold for $5.25 million — a price point that may become more common at the upper end of the region’s housing market.
From street’s edge to the farthest reaches of its backyard, the legacy residence in the tony community of Granite Bay captivates the eye. Perched on a hill and surrounded by trees, the Cape Cod-style house spans 8,000 square feet with five bedrooms.
The main level encompasses a kitchen, family room and primary suite. The upper level holds a bonus room, loft and three more bedrooms while the lower level comprises a large recreation room, home movie theater, a wine cellar and guest suite.
The 2.3-acre property, in a private gated community, is further highlighted by a pool with a waterfall, manicured landscaping, a “casita” and an expansive boat garage. There’s access to nearby Granite Bay Golf Club, as well.
Legacy property
“The sellers designed both the home and the grounds, utilizing every square inch, to make it an ideal family compound,” said listing agent Kendra Bishop of the Bishop Real Estate Group Coldwell Banker, who represented the sellers. “It is so meticulously maintained you could walk through and not find one nick, or anything. They raised their family there ... and decided it was time to allow another family to do the same with their legacy.”
Listing agent Tad Thompson of Windermere, who represented the buyer, declined to comment on the property, his client or the transaction. The new owner’s name has not been disclosed. The sellers also declined to comment through their agent. The transaction closed in late December.
The resort-inspired outdoors space spotlights flagstone patios, an eye-grabbing pool and spa, outdoor kitchen, inviting fire pit and a sports court nestled among rock outcroppings.
“A true slice of heaven, this is one of the rare opportunities to live in central Granite Bay,” the property listing states. Granite Bay lies 24 miles northeast of Sacramento, California.
What does a “slice of heaven” typically cost these days in today’s Sacramento housing market? According to Ryan Lundquist, a Sacramento appraiser and housing market expert, the price point for high-end homes may be gradually rising.
“Five million dollars used to be a lofty price point, but it’s becoming more common in the Sacramento region,” he said. “Don’t get me wrong, this is still a rare price point, but it’s not as much of a glowing headline when ... earlier this year we had the highest sale ever at $8.25 million.”
Pricing luxury homes
That record-breaking sale was for a 20-acre property with a 10,000-square-foot residence in Loomis at 2000 Creekside Lane.
In El Dorado Hills, a nine-bedroom, 12,000-square-foot compound on 10 acres with views of Folsom Lake sold for $7 million in December, $500,000 under the asking price.
The real estate market for high-end properties priced more than $5 million is limited in Sacramento, but luxury transactions are increasingly concentrated in the $3 million to $4 million range, Bishop said.
Pricing is an art
Legacy properties like the Granite Bay home are particularly unique, she added. It’s more of an art than a science in finding comparable properties when pricing them.
“When (legacy properties) go to market, it’s not unusual to see them sell in the higher price points,” Bishop said. “This is why it’s priced the way it is — there’s definitely an art to it. But I think we’re going to see more and more in the higher price points now, especially as we have an aging population in some markets, raising their kids and moving on. (These properties are) moving on to the younger generations.”
Since 2020, the region has seen 13 residential sales on MLS at $5 million and above. Seven sales were in Loomis, three in Granite Bay, and the others in Davis, El Dorado Hills and Shingle Springs.
“Homes at this price point often tend to have 7,000 to 10,000-plus square feet of living space, sometimes (with) accessory dwellings or second homes, outbuildings galore, and there are usually five or so acres — but sometimes 20 or significantly more,” he added. “Most of these units take much longer to sell than typical tract homes for first-time buyers, so it’s not uncommon to be on the market for four to five months before finding the right buyer.”
The newly purchased Granite Bay home, located at 5940 Granite Glen Court, was on the market for 183 days, according to realtor.com.
Among the 13 sales in the region above the $5 million mark, only one sold for more than the original price (barely, at $5,000 over), two sold at the original price, and 10 sold below, according to Lundquist. The difference between the closed price and the original asking price has been between $225,000 and $2 million lower.
“These unicorns are often priced above what the market will bear, and sometimes they need more significant price reductions before the right buyer pulls the trigger,” Lundquist said.
The Granite Glen Court home was originally listed in the middle of summer for $6.3 million before the asking price fell in September to $5.9 million, according to realtor.com. The closing price dropped another $650,000.
Cash is king
Cash is king at the higher end of the housing market. More than half of the 13 sales above $5 million since 2020 have been cash buyers. The Granite Glen Court home was a cash purchase, according to MLS, the multiple listing service.
Lundquist said about 19% of all sales in the region were cash purchases in 2024, “but we see more cash at the highest prices.”
Cash or credit, it’s rarefied air at the top end of the overall housing market. Less than 1% of all sales in 2024 have sold above $2 million in the four-county Sacramento region, Lundquist noted, and only 0.02% of all sales closed above $5 million in 2024, or four sales in all.
This story was originally published January 4, 2025 at 6:00 AM.
