Luxury home sales in Silicon Valley fell in August from a year ago as the market continued to be challenged by a shortage of homes for sale, according to a new report by Coldwell Banker Residential Brokerage.
The figures are based on Multiple Listing Service data of all homes sold for more than $2 million last month in Santa Clara County.
A total of 112 luxury properties changed hands in August, down 17 percent from the 135 sales in August 2015. Last month’s luxury home sales decline was the third straight month that the market saw a year-over-year drop in sales.
August’s luxury sales total was also down 10 units from July, although a seasonal decline from July to August isn’t unusual. The upper end of the luxury market was mixed with $3 million and $4 million sales flat from the previous month but down from a year ago.
Meanwhile, the median sale price of a luxury property in August dipped 6.6 percent from the same month last year to $2,475,000. Last month’s median sale price was also down from July’s, when it stood at $2,534,875.
“Silicon Valley’s red-hot luxury market has cooled a bit in recent months as we move back towards a more normal, balanced market,” said Mike James, president of Coldwell Banker Residential Brokerage.
“Part of the reason for the slower pace is lack of adequate inventory for buyers to pick from,” James said. “But we’re also seeing a normal rebalancing of the market, which will give buyers more opportunities to get into a home when inventory begins to rise again. Hopefully we’ll see that happen as the fall home-buying season gets underway.”
Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:
- The most expensive sale in Silicon Valley last month was a four-bedroom, seven-bath approximately 6,200-square-foot home in Los Altos that sold for $12 million;
- Palo Alto boasted the most luxury sales last month with 26, followed by Saratoga with 22, Los Altos with 21, and Los Gatos with 13;
- Homes sold in an average of 43 days on the market, up from 26.2 days a year ago and 33.3 days the previous month;
- Sellers received an average of 100 percent of their asking price, down from 107 percent last year and 101 percent the previous month.
The Silicon Valley Luxury Housing Market Report is a monthly report by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales. Through its internationally renowned Coldwell Banker Previews® program, Coldwell Banker is recognized around the world for its expertise in the luxury housing market.