Who Pays $1 Million (Plus) for a Home?

by Mark Friedman  on Monday, Jun. 22, 2009 12:00 am  

This Little Rock home on Sologne Circle sold for $1 million in 2008. The number of seven-figure-plus homes sold in Pulaski County has been falling every year since 2004.

(To see a list of homes in Pulaski County with sale prices of over $1 million, click here.)

Scott Girner was thinking about building a house in the country when he found a home for sale on Sologne Circle in 2008.

"I already had the lot picked out and everything," said Girner, who is the owner of Aloha Pools & Spas of North Little Rock. "Before I went to all that trouble, I wanted to see if there were some good deals out there, so that's how I found this."

Girner bought the 7,000-SF west Little Rock home with five bedrooms and seven bathrooms from the Bank of England for $1.17 million. (The bank acquired the home from Chateau Custom Homes Inc., led by David McFatrich, in an $850,000 foreclosure sale in October 2007.)

Girner also said that the two-story home's location on one of the golf courses at Chenal Country Club attracted him.

He said the property didn't have a pool, but - naturally - he's planning to add one.

Girner's spread is one of 21 homes in Pulaski County that sold for $1 million or more in 2008. And that number includes one that was recovered by a bank in a foreclosure.

The number of $1 million-plus homes sold has been slipping every year since 2004, when 29 were sold. Last week, 56 seven-figure homes were on the market in the Little Rock area, up from 42 during the same period last year, according to Jon Underhill, owner of Jon Underhill Real Estate of Little Rock.

At the rate they sold in 2008, there's a two and a half year inventory of seven-digit houses already officially on the market - and others that are known to be for sale even if no real estate agent has been contracted.

"For the last several years we have seen more and more million-dollar homes being built," he said in an e-mail statement to Arkansas Business. "It only stands to reason that we have an increased supply."

In the last five years, the most expensive home purchased was on prestigious Edgehill Road. John and Christian Kelly bought that home for $3.2 million in 2004.

The most expensive home sold in 2008 was priced at $2 million. The J. Warren Simpson Revocable Trust bought the 5,332-SF home near the Country Club of Little Rock.



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