Luxury home sales in Silicon Valley soared in February from both the previous month and a year ago as the high-end market continued to gain momentum, according to a new report by Coldwell Banker Residential Brokerage, the South Bay’s leading provider of luxury real estate services.
A total of 58 properties sold for more than $1.5 million last month, more than double January’s total of 28 and sharply higher than February 2011, when 38 luxury homes changed hands. Sales of $2 million-plus properties also surged in February to 35 transactions, nearly twice as many as a year ago.
Also encouraging for the high-end market was that the median sale price of luxury properties also moved higher to $2.1 million last month, up 7.3 percent from the like period a year ago and 1.5 percent from the previous month.
Other market indicators were positive as well. Homes sold in an average of 50 days on the market, down from 57 a year ago and 66 the previous month. And sellers received 100 percent of their asking price on average, the same as a year ago and down fractionally from January.
The figures were derived from Multiple Listing Service data of all homes sold for more than $1.5 million last month in Santa Clara County.
“The luxury market in Silicon Valley is showing no signs of slowing down as we head into the spring home buying season,” said Rick Turley, president of Coldwell Banker Residential Brokerage. “There are a number of forces driving demand, including a robust stock market, an improving economy and consumer confidence, and the strength of the tech sector here in the valley.”
Turley noted that Silicon Valley firms have added a number of highly compensated engineers and other knowledge workers, many of whom have relocated to the valley and have been looking for a home. Additionally, recent initial public offerings have created a slew of newly minted millionaires also looking to invest in high-end properties.
“With the spate of tech, biotech and social media IPOs over the past year or so, along with the upcoming Facebook IPO, the demand for housing in the valley is only getting stronger,” he said. “For sellers, there couldn’t be a better time to think about listing their home. Clearly, the scales of supply and demand are tipping back in their favor.”
- The most expensive sale in Silicon Valley last month was a six-bedroom, nine-bath 16,000-square-foot home in Los Gatos that sold for $11,550,000;
- Palo Alto again boasted the most luxury sales over $1.5 million with 16, followed by Los Altos with 14, Saratoga with nine and Los Gatos with eight;
- Homes sold in 50 days on average, down from 57 days a year ago and 66 days the previous month;
- Sellers on average received 100 percent of their asking price, the same as a year ago and down from 101 percent the previous month.
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.