The Luxury Market
The Bay Area luxury market—defined by the top 10 percent of all homes sold—performed somewhat similarly to the rest of the regional market. Average home sale prices were up across the board, and even saw higher percentage gains than non-luxury properties. At the same time, low inventory caused sales volume to drop, offsetting gains from the market’s massive closings.
patterns with 111 closings this quarter. The average sales price of $4.082 million also bested all other regions with its 15 percent year-over-year gain. This included five sales above $12 million, including a $16.95 million sale in Woodside—the Bay Area’s largest transaction this quarter. The average 54 DOM hastened just slightly from recent trends.
San Francisco showed the most dominant performance, with its $4.53 million average home sale leading the way. This figure was a healthy rebound for the city’s luxury sector, equating to an 18 percent rise in average sales price from Q3 2014. The $4.53 million average was also a 9 percent gain year-over-year, making San Francisco the Bay Area’s only luxury region to see both year-over-year and quarter-over-quarter gains. The 27 average DOM was a lightning-fast turnaround time for a market with homes at such high prices, and was 36 percent faster than Q4 2013. The 68 homes sold were consistent with Q4 2013 and were a 17 percent improvement on Q3 2014. Standout sales included $14 million and $11.75 million closings, both in Pacific Heights.
East Bay luxury homes averaged $1.633 million this quarter in what remains the most popular option for those looking for luxury living in the Bay Area, but without the big city price tag. The 479 homes sold—while not a thrilling number—was steadily in line with the previous year. The average 30 DOM remained low, as is always the case in Contra Costa and Alameda Counties.
Inventory remains glaringly scarce in the Mid-Peninsula, but the luxury sector showed little deviation from previous sales volume
The North Bay was perhaps the hardest hit by the inventory shortage, as showed in its 189 total sales, which fell 6 percent year-over-year and 16 percent quarter-over-quarter. Despite this setback, sales prices continued to rise, with the average luxury sale of $2.594 million up 14 percent from Q4 2013. The average 97 DOM was fairly typical.
* Data is sourced from the San Francisco Multiple Listing Service, the East Bay Region District Listing Service, Bay Area Real Estate Information Services, and MLS Listings (MLS). MLS data is provided by individual listing brokerages. These are sources we deem reliable. We have no reason to doubt their accuracy, but we do not guarantee them. Past performance does not guarantee future performance
Page 8 | McGuire Real Estate Quarterly Report - 4th Quarter 2014