Real estate is a very interesting thing.

It is amazing how in the very same city we can see one type of housing appreciating and selling like crazy and another type just keeping it’s head above water.

In San Diego , the housing market operates no differently.

Median priced homes are languishing on the market for months and are slowly losing value day by day.

On the other side of the spectrum, we have high-priced mansions that are still appreciating consistently and show no sign of slowing down.

Why is this happening?

Well, there are a variety of factors that are contributing to the success of pricey homes on the market.

A recent article by Dean Calbreath of The San Diego Union Tribune, “Expensive homes in county gain in value,” discusses this interesting real estate trend we are seeing consistently occurring throughout most areas of San Diego that are home to expensive real estate.

“After a year of declining home prices and shrinking sales, real estate agents in San Diego County can still take comfort from one segment of the market where price tags are jumping. The richest people in the county continue to get richer, meaning that the most expensive houses in the county are getting even more expensive.”

“In four out of San Diego's five priciest markets, home prices either remained steady or rose last year, with two neighborhoods raking in double-digit increases even as prices slipped in less costly areas.”

The main reason behind this phenomenon is that San Diego is continuing to attract more wealthy residents month by month.

“Between 2003 and 2006, the number of households with a net worth of $1 million or more in San Diego County rose 17 percent, from 31,566 to 37,024, according to Claritas, a nationwide market research firm.”

More people with loads of money have been making a change and calling San Diego home; which means that the demand for these higher priced homes will continue to increase.

“Although the median price of a home in Del Mar was basically flat at $1,234,000, the median La Jolla price rose 12 percent to $1,044,000, Coronado rose 6 percent to $1,299,000 and Rancho Santa Fe's 92091 ZIP code rose 12.5 percent from $2,006,000, according to data compiled by DataQuick, a real estate information service.”

But as the demand for these pricey homes continues to increase, will this price out other potential homeowners from the housing market who are not millionaires?

“Despite the recent softness in the housing market, over the long term, the millionaire effect is likely to continue. Claritas estimates that over the next five years, the number of millionaire households in San Diego will grow by 21,000. Although they will still represent only a small sliver of the population, their influence will continue to grow.”