Silicon Valley’s luxury housing market retreated during the month of December, as both sales and prices eased compared to a year earlier, according to a new report by Coldwell Banker Residential Brokerage, the Bay Area’s leading real estate services company.
There were 78 sales of homes priced $2 million and higher during the month, a 25.6 percent drop from 98 sales during the same month in 2015, and 45.8 percent lower than 144 sales in November. The data is based on sales transactions recorded in Santa Clara County by the Multiple Listing Service.
Meanwhile, the median selling price for a luxury property last month dipped to $2,438,000, down 6.5 percent from the $2,597,500 median sales price recorded in December 2015. December’s median sales price for a luxury home was also lower than the $2,510,000 median sales price posted in November.
The upper end of the market also saw a decline. Of the luxury home sales in December, 19 were of homes priced $3 million and higher, compared to 26 a year ago and 42 sales in November. There were seven sales over $4 million, down from eight the prior year and 11 in November.
“Restricted inventory levels have certainly affected the luxury market, as many buyers have been frustrated by the lack of homes available for sale,” said Mike James, president of Coldwell Banker Residential Brokerage. “Luxury homes were selling at a relatively quick pace last month – an average of just over a month — indicating that buyer demand is still very healthy. Silicon Valley continues to draw buyers because of its solid economy and jobs market.”
Below are some additional findings from the December Coldwell Banker Residential Brokerage luxury report:
- The most expensive sale in Silicon Valley in December was a 7,800-square-foot home in Los Altos with seven bedrooms and eight baths that went for $11.2 million
- Homes sold in an average of 38 days, which is about the same as a year earlier when homes sold in an average of 37 days
- Sellers received an average of 99 percent of their asking price, which is off from 101 percent a year ago
- Luxury home sales were concentrated mostly in Los Altos, which had 16 sales, followed by Palo Alto with 15 sales
The Silicon Valley Luxury Housing Market Report is a monthly report produced by Coldwell Banker Residential Brokerage, which specializes 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.
Coldwell Banker Residential Brokerage serves Santa Clara County with 21 offices from Palo Alto to Hollister.