Luxury home sales in San Francisco reached their highest level since 2008 during the second quarter of this year 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 86 homes sold for more than $2 million in San Francisco during the April-June quarter, up from just 50 sales in the first quarter of the year and 76 during the second quarter of 2010. The 86 transactions marked the highest level of multi-million-dollar sales in the city since just before the Lehman Brothers collapse and the subsequent crash of the financial markets.
While sales have steadily improved, prices in the high-end market continued to adjust during the most recent quarter. The median sale price of a multi-million-dollar home in San Francisco dipped to $2,665,000 during the second quarter, down from $2,727,500 in the first quarter and $2,912,500 during the same period a year ago.
Other metrics showed improvement for the city’s luxury market. Home sales over $3 million more than doubled from the first quarter to 33 transactions. Homes sold in average of 70 days, down from 79 days the previous quarter. And sellers received 97 percent of their asking price on average, up from 96 percent in the first quarter.
“After a fairly quiet spring, the housing market is heating up this summer, particularly the luxury market here in San Francisco,” 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 Silicon Valley, 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 the second quarter Coldwell Banker Residential Brokerage luxury report:
- The most expensive sale in San Francisco during the quarter was a six-bedroom, seven-bath 5,800-square foot home in Presidio Heights that sold for $9.25 million;
- Zip code 94123 (Marina) had the most multi-million-dollar sales with 14, followed by 94115 (Pacific Heights) with 11 sales, 94109 (Nob Hill) with nine, and 94114 (Noe Valley/Castro Valley) and 94118 (Presidio Heights/Inner Richmond) with eight apiece;
- Sellers received on average 97 percent of their asking price, up from 96 percent the previous month but down from 98 percent a year ago;
The San Francisco Luxury Market Report is a quarterly 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 San Francisco with five offices. For more information, please call 925-275-3085.