Here we saw a mix of noticeable average sales price dips combined with some massive upswings in sales volume. Given the smaller size of this data pool—and the fact that many of the Bay Area’s highest-priced homes have already passed through the market—any major gains or losses here shouldn’t be viewed with the same scrutiny one might apply to the general market.
The most interesting market activity took place in the East Bay. The region’s average $1.808 million luxury home sale was down 13 percent year-over-year. However, this drop was easily offset by the 376 homes sold up a massive 66 percent from the 227 sales in the previous year. Average DOM was up 17 percent from the previous year and 33 percent from the previous quarter. The combination of these three factors points to an East Bay luxury sector that is at one of its most attractive points for sellers in several years.
San Francisco’s $4.77 million average home sale showed no noticeable gain from a year prior. Its 45 luxury home sales were up from the 35 total that occurred in Q1 2016. The average 45 DOM also moved at a 16 percent slower pace compared to the previous year. As was the case in the East Bay, these numbers should encourage buyers looking to navigate the small terrain of San Francisco luxury properties.
The Mid-Peninsula’s luxury market experienced slightly different trends during this first quarter of the year, with its $3.948 million average sale down 7 percent year-over-year. Its 71 homes sold in total was also slightly down from the 76 total homes sold last year. Sellers can be reassured that this market is still red-hot, as was evidenced by the 31 DOM average for Mid-Peninsula luxury homes—a 28 percent faster rate than a year prior, and a 47 percent faster rate than in the previous quarter.
Finally, the North Bay provided a bit more predictability and stability. Its $2.904 million average home sale was up 9 percent year-over-year, and its 140 total sales were right in line with those of Q1 2016. The average 111 DOM here moved at 12 percent faster rate year-over-year.
BAY AREA MARKET SHARE
The Mid-Peninsula continued to lead the luxury market in sales volume at 34 percent and cash share at 33 percent during the first quarter of 2017. San Francisco accounted for 20 percent of all sales and a strong 23 percent of cash share. The East Bay contributed 24 percent of all sales and 20 percent of cash share. The North Bay’s 22 percent of total sales and 24 percent of cash share were the most common figures in terms of recent trends. In all, the 635 luxury homes sold across the Bay Area’s seven counties accounted for a total of $1.727 billion.