Silicon Valley Luxury Home Sales Down in July, Coldwell Banker Residential Brokerage Reports

After a strong performance in June, the Silicon Valley luxury housing market took a breather in July with sales of million-dollar homes down from June and year-ago levels, according to a new market report by Coldwell Banker Residential Brokerage, the region’s leading provider of luxury real estate services. 

A total of 208 homes sold for more than $1 million in Santa Clara County last month compared with 244 homes in July 2010. Sales were off sharply from the 284 homes sold in June, which represented the most million-dollar deals in Silicon Valley for any month in nearly three years.

The median sale price of a million-dollar home in the South Bay stood at $1.35 million last month, down 3.6 percent from June off fractionally from a year ago, when the median was $1,362,500.

Other metrics also showed a fairly flat market year-over-year: Homes sold in an average of 38 days last month compared to 41 days the previous month and year ago. And sellers received 99 percent of their asking price on average, the same as a year ago and off slightly from July’s 100% average. However, the number of multi-million-dollar sales dropped from 45 to 34 year over year.

The figures were derived from Multiple Listing Service data of all homes sold in Santa Clara County for more than $1 million last month.

“Like the overall market, the luxury segment of the Silicon Valley housing market took a step back in July after a robust June,” said Rick Turley, president of Coldwell Banker Residential Brokerage. “It’s hard to put your finger on any single reason, but continued uncertainty over the economy and the geo-political events taking place, both in Washington and overseas, probably played a role. High-end buyers appeared to be sitting on the sidelines last month waiting for things to get sorted out.”

Turley said the same softness in Santa Clara County was seen throughout the Bay Area in July. According to DataQuick, the La Jolla-based information service company, 6,887 new and resale houses and condos sold in the nine-county Bay Area last month. That was down 13.9 percent from 7,998 in June and up 1.7 percent from 6,773 in July 2010.

Last month’s sales fell harder in the higher price ranges, DataQuick noted. The number of $500,000-plus homes sold dropped 25.4 percent month-to-month and 19.2 percent year-over-year, analysts said.

Some key findings from this month’s Coldwell Banker Residential Brokerage luxury report:

  • The most expensive sale in Santa Clara County last month was a six-bedroom, 10-bath 10,229-square foot home in Los Altos that sold for $7 million;
  • San Jose boast the most million-dollar sales last month with 42, followed by Palo Alto with 39, Los Altos with 37, Saratoga with 24 and Cupertino with 21;
  • Sellers received on average 99 percent of their asking price, down from 100 percent the previous month and the same as a year ago;
  • Homes closing last month stayed on the market an average of 38 days, down from 41 days the previous month and 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.

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