May was an extremely good month for the luxury housing market in Silicon Valley, as according to Coldwell Banker Residential Brokerage, high-end property sales soared compared to the previous month, and compared to a year ago.
All in all, 148 homes were sold for more than $1.5 million in May; this is an incredible 59% increase compared to May last year when just 93 high-end properties changed hands. Sales for May were also nearly 16% higher than for April, and the month saw the highest number of monthly sales since last November. The upper end of the luxury market performed extremely well, as 57 sales were for properties worth more than $2 million, compared to 42 a year ago. A total of 14 transactions were for homes worth more than $3 million, compared to just eight in that price bracket last year. However the median sales price for a luxury home was essentially the same as a year ago, as it was $1.9 million in May 2011 and $1,887,500 in May this year.
Rick Turley, president of Coldwell Banker Residential Brokerage commented on these results saying "Silicon Valley is showing all the signs of a classic seller’s market with strong buyer demand, a severe shortage of home listings to choose from, and multiple offers on many properties. With inventory levels remaining near-record lows, I suspect we'll continue to see this scenario play out, at least for the near term."
In a number of areas in South Bay, inventory levels are down by 30 to 50% compared to a year ago, leaving the market in favour of sellers. It's becoming the norm to see multiple offers on homes, and some are even selling for more than the asking price.
According to the Coldwell Banker Residential Brokerage luxury report, the most expensive homes sold in Silicon Valley in May was in Palo Alto, and was a six bedroom, seven bathroom 4500 ft.² home that sold for $5,098,000. The average home is selling in just 36 days where as a year ago it would have taken 41 days. Sellers are receiving an average of 103% of their asking price, compared to 99% a year ago.
The Silicon Valley Luxury Housing Market Report is a monthly report compiled by Coldwell Banker Residential Brokerage, a specialist in high-end real estate sales.