With election concerns in the rear view and a healthy stock market back in place, high-priced homes moved swiftly in areas like San Francisco and Mid-Peninsula as 2016 came to a close. To the relief of many sellers, this included a bevy of $5 million-plus homes that had spent hundreds of days on the market finally closing.
San Francisco’s $5.653 million average home sale was up a massive 25 percent year-over-year, with the bottom-end of this market up $450,000 from where it was in Q4 2015. A 78 percent rise in average DOM from the previous year can be attributed to homes that had been on the market for many months finally finding buyers. This included a $21.8 million home in home that had been on the market for 213 days.
The Mid-Peninsula’s $5.073 million average sale was up 10 percent from Q4 2015, and also included a 10 percent gain in sales volume. Atherton continued to be a main driver of gains in this region, with its six eight-figure sales including a Bay Area-high $34.9 million listing that closed in early December after spending 269 DOM.
While steady, market activity in the North Bay and East Bay was less remarkable this quarter. Average sales prices in both regions barely moved from a year prior, while sales volume also showed little deviation. This activity should not come as much of surprise as the two regions are home to four of the most affordably priced counties—which is exactly where buyers are turning when they’re looking for luxury market alternatives.
BAY AREA LUXURY MARKET SHARE Mid-Peninsula dominated the luxury market, with 35 percent of all sales and 38 percent of total cash share, which equates to approximately $950 million. San Francisco’s impressive Q4 behavior amounted to 24 percent of all sales and 26 percent of cash share. The North Bay posted 20 percent of all sales and 18 percent of cash share. East Bay had a slower quarter in this sector, posting just 22 percent of all sales and 17 percent of cash share. In all, luxury sales for Q4 2016 totaled an impressive $2.503 billion.