Silicon Valley’s million-dollar home sales reached their highest level in three full years in June as the high-end market continued to bounce back from the recessionary downturn, according to a new market report by Coldwell Banker Residential Brokerage, the region’s leading provider of luxury real estate services.
A total of 284 homes sold for more than $1 million in Santa Clara County last month, up from 230 sales in May and 266 in June 2010. The 284 transactions were the most million-dollar deals in the county for any month since June 2008, the period leading up to the Lehman Brothers collapse and the subsequent crash of the financial markets.
The median sale price of a million-dollar home in Silicon Valley also moved higher in June to $1.4 million, up 6.8 percent from last year’s $1,310,000 median and up 2.3 percent from May’s level of $1,368,500.
Other metrics continued to show steady improvement for the South Bay high-end market. Multi-million sales jumped sharply to 52 transactions last month, up from 42 in May and 36 a year ago. And sellers received an average of 101 percent of their asking price last month due to multiple offers bidding up sales over the listing price.
The figures were derived from Multiple Listing Service data of all homes sold in Santa Clara County for more than $1 million last month.
“After a fairly quiet spring, the housing market really is heating up this summer and Silicon Valley’s luxury market in particular is gaining momentum,” said Rick Turley, president of Coldwell Banker Residential Brokerage. “The high-end segment normally leads the way for the rest of the market in a housing recovery, so this is encouraging news for the entire market.”
Turley said Coldwell Banker is seeing similar improvement in other luxury markets around the Bay Area, including San Francisco, the Peninsula and Marin County. All of those markets have bounced back from their recessionary lows and in some cases are nearing their pre-recession levels in sales.
Although the high-end markets have done best, Turley noted that many entry-level and mid-level markets around the Bay also showed solid gains last month. Bay Area home sales overall in June rose to their highest level for any month since June 2010, when expiring tax credits gave housing a final boost, according to DataQuick, the La Jolla research firm.
Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:
- The most expensive sale in Silicon Valley last month was a six-bedroom, six-bath 4,000-square foot home in Palo Alto that sold for $5,545,000;
- Los Altos boasted the most million-dollar sales with 54, followed by San Jose with 50, Palo Alto with 47, Saratoga with 35, and Los Gatos with 24;
- Sellers received on average 101 percent of their asking price, up from 100 percent the previous month and 99 percent a year ago;
- Homes closing last month stayed on the market an average of 41 days, up from 34 days the previous month and 39 days a year ago.
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, the company 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. For more information, please call 925-275-3085.