Silicon Valley’s luxury housing market capped a strong year in 2013 with sales edging up 8.9 percent in December over a year ago, according to a new report by Coldwell Banker Residential Brokerage.
The figures are based on Multiple Listing Service data of all homes sold for more than $1.5 million in December 2013 in Santa Clara County.
A total of 122 luxury homes sold in December, up from the 112 sales in December 2012. On a monthly basis, high-end December sales were below November’s 151 transactions, though a decline from November to December isn’t unusual.
“Silicon Valley’s luxury housing market had a great year in 2013, with sales increasing consistently on a year-over-year basis, especially in the upper end of the market,” said Rick Turley, president of Coldwell Banker Residential Brokerage. “The only thing that kept sales from going even higher was the severe shortage of homes on the market.”
The median December 2013 sale price of a luxury home in Silicon Valley was $1.9 million, nearly 1 percent higher than the previous month but down 3.6 percent from a year ago, when the median price was $2 million. The upper end of the luxury market recorded 59 sales of more than $2 million, up from 57 a year ago. The 13 sales in excess of $3 million were down from 19 a year ago.
Other key market indicators improved on an annual basis, with homes selling faster on average in December versus a year earlier and sellers receiving a higher percentage of their asking price on average.
“We continue to have an imbalance between the supply of homes and the extremely strong demand from buyers in the Valley,” Turley said. “There are signs that this is gradually starting to change, with more inventory expected to come on the market in the weeks ahead. Hopefully, that will bring the market back into a healthier balance in 2014, which will be good for everyone – buyers and sellers alike.”
Other key findings from the Coldwell Banker Residential Brokerage luxury report:
• The most expensive December 2013 sale in Silicon Valley was a four-bedroom, eight-bathroom, 4,300-square-foot home in Palo Alto that sold for $6.1 million.
• Palo Alto boasted the most luxury sales with 31, followed by Los Altos with 27, Saratoga with 22 and San Jose with 17.
• Homes sold in an average of 33 days, down from 60 days a year ago but more than the 25 days during the previous month.
• Sellers received an average of 104 percent of their asking price, up from 101 percent a year ago but down from the 106 percent the previous month.
The Silicon Valley Luxury Housing Market Report is a monthly report by Coldwell Banker Residential Brokerage. For more information, visit californiamoves.com.