Luxury Market Trends | Q2 2016

|July 22, 2016

Luxury Market Trends | Q2 2016
The luxury market—defined by the top 10 percent of all sales in the markets we serve—displayed more varied figures than were seen in the general housing market, but all in all the same effect of balance and stability can be applied to the four Bay Area regions when looked at as a whole. That said, some areas fared noticeably better than others.
Luxury Market Trends | Q2 2016
The Mid-Peninsula performed dominantly, with its $5.284 million average sales price up 10 percent year-over-year and its 1,223 sales up 6 percent from Q2 2015. This included 12 sales of $10 million or more, with a $19.75 million sale in Atherton registering as the Bay Area’s top sale this quarter. Expect increasingly popular areas like Woodside and Atherton to continue attracting eager ultra-prime buyers as 2016 continues to unfold.
Luxury Market Trends | Q2 2016
The North Bay also performed well, with its $3.121 million average sales up 10 percent year-over-year. This was slightly counterbalanced, however, by the 227 sales for the region being down 6 percent from Q2 2015. However, luxury homes in the North Bay did move at a healthy pace of 51 DOM during the second quarter—an average that was 37 percent faster than the previous year.
Luxury Market Trends | Q2 2016
San Francisco’s activity stood in stark contrast to that of the Mid-Peninsula and North Bay. The $4.913 million average sale here was down 15 percent year-over-year, in addition to the average 40 DOM being nearly double what it was from a year prior. It should be noted that this signifies less of a depreciation in the San Francisco luxury sector than it does a time in which less high-priced inventory is available in the city and more buyers are looking for more economical options.
Luxury Market Trends | Q2 2016
The East Bay showed more of a stabilized effect than all other regions. The $1.912 average home sale was flat in comparison to the previous year, and total sales volume was down just 2 percent from Q2 2015. This activity came in the wake of a Q1 2016 that saw a large amount of high-priced East Bay properties enter and be absorbed by the market.

BAY AREA LUXURY MARKET SHARE
The Mid-Peninsula’s strong performance led the way with 38 percent of cash share ($1.148 billion) and 35 percent of all Bay Area luxury sales. The North Bay added 24 percent of cash share and 23 percent of sales volume. The East Bay contributed 19 percent of cash share and 24 percent of all sales. San Francisco provided 19 percent of cash share and 18 percent of total sales. This amounted to 985 luxury sales for a total of $2.988 billion in Q2 2016.
Luxury Market Trends | Q2 2016


DOWNLOAD THE McGUIRE QUARTERLY REPORT.
McGuire Quarterly Report | Q2 2016
FIND Q2 2016 MARKET UPDATES FOR EACH COUNTY AT MCGUIRE.COM/QUARTERLY_REPORT.

Category Luxury, Quarterly Report

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McGuire Real Estate

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