San Francisco had the highest average sales price for luxury homes this quarter at $5.334 million. This occurred even without the city seeing any ultra-prime transactions taking place in the $20 million and above sector as it did during the busier Q2 and/or Q3 selling seasons. However, this figure was still down 6 percent from Q4 2016. Luxury homes in San Francisco sold at a faster pace than any other Bay Area region this quarter, spending an average of 31 DOM before going into contract. The city’s Q4 turn-around time was 35 percent quicker than the previous year, indicating that buyers navigating this upper end of the market were prepared to move quickly in order to secure their ideal property. A total of 61 homes sold in San Francisco’s top-tier market this quarter.
At $4.489 million, the Mid-Peninsula’s average sales price for luxury homes was down 11 percent year-over-year, suggesting a slight cool-down in what’s consistently been one of the Bay Area’s top luxury markets. Even so, San Mateo County still experienced the highest priced sale of Q4 2017, with an 18.9 million home sale taking place in Atherton. A total of 113 luxury homes sold this quarter, remaining exactly in line with its previous sales volume figures recorded in Q3 2017 and Q4 2016. Luxury homes in the Mid-Peninsula sold quicker than they did in both the previous quarter and previous year. The average 38 DOM for the area was 24 percent faster quarter-over-quarter and 36 percent faster year-over-year.
The North Bay’s luxury market saw an 11 percent drop in average sales price from the Q3, when it reached its highest point this year at $3.071 million. However, the area’s $2.729 million average quarter did grow by 4 percent year-over-year when it stood at $2.614 million. Sales activity in the North Bay’s luxury sector was slightly busier this quarter, with 224 total sales, resulting in a 22 percent increase from Q4 2016 — and the highest year-over-year sales volume gain of all four regions. Luxury properties here spent an average of 83 DOM. This figure is fairly typical for the area given that many of the upper-end offerings serve a unique buyer pool either looking for several acres of land and/or developed agricultural space. For example, the North Bay’s most expensive transaction this quarter was a $9 million ranch in Dillon Beach that was on the market for the first time in 150 years.
In the East Bay region, the average sales price may be the lowest in the luxury market (in fact its highest priced sale in Q4 was $5.25 million), but it saw the biggest average price gain year-over-year among the four regions and it registered the largest number of sales. The average price in Q4 was $1.913 million, an 8 percent gain over Q4 2016’s $1.764 million and up slightly from Q3’s $1.907 million. The sale of 531 homes in Q4 was 5 percent higher than the 507 in Q4 2016. East Bay also had the second lowest DOM among the four regions at 35 in Q4, down from 36 during the same quarter 2016.
BAY AREA LUXURY MARKET SHARE
The Mid-Peninsula accounted for the largest portion of Bay Area luxury market share with 37 percent by unit and 38 percent by volume ($1.04 billion). San Francisco represented 21 percent of all luxury homes sold and 24 percent of its volume ($655 million). The East Bay claimed 22 percent of the market share by unit and 19 percent by volume ($506 million). And the North Bay accounted for 19 percent by unit and 19 percent by volume ($524 million). In all, there were 927 luxury homes sold across the Bay Area’s seven counties and they accounted for a total of $2.725 billion in sales.