Silicon Valley’s luxury housing market began 2016 with slightly lower home sales in January compared to a year ago as the market continues to be challenged by low inventory, according to a new report by Coldwell Banker Residential Brokerage, the South Bay’s leading provider of luxury real estate services.
The figures are based on Multiple Listing Service data of all homes sold for more than $2 million last month in Santa Clara County. Beginning this year, Coldwell Banker Residential Brokerage has raised the threshold for luxury properties in its monthly analysis to $2 million from $1.5 million to reflect the changing dynamics of Silicon Valley’s high-end market.
A total of 48 luxury properties changed hands last month, down 4 percent from the 50 sales in January 2015. Last month’s total was also down sharply from December’s level of 98 sales, although it’s not unusual to see a significant drop from December to January as more buyers try to close before year end.
Meanwhile, the median sale price of a luxury property last month was $2,395,000, down 12.1 percent from a year ago when it was $2,727,500. January’s median was also down 7.8 percent from December’s level of $2,597,500.
The drop in median price was due in part to the mix of homes that sold last month, with fewer sales in the upper end of the luxury market. Twelve homes sold for more than $3 million in January, down from 19 a year ago, and three homes sold for over $4 million, down from seven year-over-year.
“Luxury home sales in Silicon Valley remain fairly steady from a year ago, but a limited inventory of homes on the market may be having some impact on sales,” said Mike James, president of Coldwell Banker Residential Brokerage. “It’s hard to get a good gauge on the market from the first month or two of the year since these sales generally began over the holidays when there isn’t as much activity. We’ll have a better idea how 2016 will be as we get into the spring home-buying season.”
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 approximately 6,600-square-foot home in Los Altos that sold for $4.8 million;
- Palo Alto boasted the most luxury sales with 10, followed by Los Altos with eight, Saratoga with seven, San Jose with six, Los Gatos with five and Mountain View with four;
- Homes sold in an average of 46.7 days on the market, up from 42.3 days a year ago and 36.7 days the previous month;
- Sellers received an average of 103 percent of their asking price, up from 102 percent last year and 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, Coldwell Banker 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 925.771.5285.