The luxury housing market around the Bay remains strong as we head toward spring, with sales and prices climbing in most areas. But inventory shortages are starting to have an impact in some communities where listings are even more scarce than they were last year at this time. And that’s saying something.
Sales over $1.5 million in Silicon Valley jumped 22 percent in January from a year ago, according to our latest Coldwell Banker Previews luxury market report. The upper end of Silicon Valley’s luxury market was particularly robust with 50 sales over $2 million, double the number last year, and 19 sales over $3 million, nearly triple the seven sales at that level a year ago.
Meanwhile, the median sale price of a luxury home in Silicon Valley climbed to $2.1 million in January, up 9.4 percent from a year ago when the median stood at $1,920,000. Prices were also up from December’s $1,915,000 median.
But up in the North Bay, a severe shortage of listings is starting to impact sales. Our Marin County luxury market report announced 24 sales over that $1.5 million level in January, down from 29 in January 2014. And the median sale price dropped to $1,915,000 from $2,385,500 in December and $3,075,000 in January 2014.
One of the reasons for the decline in the median price was the mix of homes that sold changed in January with fewer multi-million-dollar transactions than the previous months. There were just 10 sales over $2 million in January compared to 16 in December and 23 last January – again, one more fallout from the inventory shortage.
The East Bay luxury market, however, continued its torrid pace in January, driven in part by house-hunters from San Francisco and Silicon Valley looking for more affordable high-end properties. There were 140 sales over $1 million, up 52 percent during the month from a year ago. There were also 14 sales over $2 million, up from 11 in January 2014.
There’s talk of more listings coming on the market all around the Bay in time for our spring home buying season. Let’s keep our fingers crossed that these new listings materialize. The buyers are more than ready!