The strongest luxury market in Q2 was San Francisco, which was buoyed by an eye-popping $40-million home sale in Pacific Heights. This sale impacted the average sales price pushing it to the highest in the luxury market at $5.506 million, a 15 percent hike over last quarter’s $4.769 million and a 12 percent gain over the $4.912 million posted in the same quarter a year ago. In total, there were 63 luxury homes that sold this quarter in San Francisco, resulting in a 3 percent gain from Q2 2016. The average luxury home sold in 38 days in Q2 2017.
The Mid-Peninsula luxury market’s $4.961 million average sales price was the second highest of all four regions. The average sales price here rose 26 percent from the previous quarter, demonstrating the seasonal uptick in market activity and interest that we’ve come to expect at the start of spring. However, the 6 percent decrease in average sales price on a year-over-year basis, suggests that this notable upper end market experienced a slight cool down during Q2 2017. The 131 total number of homes sold this quarter was just 2 percent above last year’s second quarter benchmark. Interestingly enough though, the average 37 DOM for Mid-Peninsula luxury homes was the faster rate of all regions—moving 13 percent faster than a year prior.
While the East Bay may have the lowest average sales price of all luxury markets, it did have the highest number of total sales in Q2 2017. At $1.988 million, the East Bay’s average luxury sales price was a 4 percent gain from the previous year. The 586 homes sold in Q2 was up 56 percent from the 376 homes sold in Q1, but was only up 1 percent compared to a year prior. That, combined with an average 24 DOM this quarter, made for a stable luxury market for both buyers and sellers in the East Bay.
The North Bay’s $3.061 million average sales price was up 5 percent from the previous quarter, but was down slightly from the previous year’s benchmark of $3.12 million. Naturally, Q2 was far busier in the total number of luxury homes sold than what occurred in Q1 2017, the quarter’s total of 224 homes sold still showed little change from Q2 2016. The average luxury home in the North Bay sold after spending 54 DOM—the highest average of all upper end markets—and a seemingly more common trend due to the fact that the region tends to appeal a more specific and limited buyer pool, who’re in search of such expansive properties, vineyard estates, and/or vast acres of land.
BAY AREA MARKET SHARE The Mid-Peninsula continued its trend to lead the luxury market in sales volume at 35 percent and cash share at 38 percent during the second quarter of 2017. San Francisco accounted for 18 percent of all sales and 21 percent of cash share. The East Bay and the North Bay were the most common figures in terms of recent trends contributed the same amounts—22 percent of all sales and 22 percent of cash share. In all, there were 1,004 luxury homes sold across the Bay Area’s seven counties that we serve.