Used McMansions are selling briskly

According to new data, McMansion's are selling like hotcakes. McMansions are homes in the $750K to $1M price range (though that price range is higher here in the valley), are really big compared to lot they are built on, and doesn't really fit for the neighborhood it is built in. According to the article from Market Watch, existing home sales in January were basically flat, but the higher end homes, the McMansions have seen a 13% increase in sales.

Usually these are homes someone built in an existing neighborhood of older, smaller, average homes. It's like the one newer, nice house some built in the neighborhood. An example of that here in the Silicon Valley is the Ranco Rinconada area of Cupertino (the area west of Lawrence Expressway, East of Miller Ave, South of Stevens Creek Blvd, North of Bollinger Rd). In this area you will find, if I may call it so, lower cost homes built in the 1950s of Stern and Price design. Dotted among these lower end homes (which are pretty high value at an average sales price of $1.5M since it is Cupertino after all) are McMansions. The reason why home buyers and investors have been flocking to the area over the years and buying homes there is because they sit on HUGE lots. I'm talking 7,000 Sq. Ft on average, some lots as big 11,000 Sq. Ft. So with those ginormous lots, investors and some home buyers are tearing down the smaller, older existing home and building giant home new homes. They are typically two stories, with the newer amenities, allot more square feet inside and taking up more of the lot they are built on. The house definitely doesn't match compared to the neighborhood it sits in. Anyhow, whoever coined the term McMansions might have been thinking about Rancho Rinconada.

McMansions Remain a Hot Buy
Used McMansions are selling briskly