The luxury market, defined as the top 10 percent of all sales in an area, had the most notable year-over-year gain in the Mid-Peninsula this quarter. The average luxury home in San Mateo County sold for $5.05 million, for a 28 percent increase from Q1 2017 and 12 percent rise from Q4 2017. While there were six closings that took place within the $10-15 million range, the Mid-Peninsula’s ultra-prime market was fairly quiet this quarter with no sales activity happening at or above $20 million. A total of 78 luxury homes sold in San Mateo County in Q1 2018, up 10 percent from the 71 sold in Q1 2017, and down 31 percent from the 113 sold in Q4 2017. On average, it took an average of 36 DOM before properties in this upper-end of the market went into contract, moving 15 percent faster than this time last year.
San Francisco continued to lead the way in the Bay Area’s luxury marketplace in terms of average sales price, at $5.069 million this quarter. The city’s luxury average did see a 5 percent decline from Q4 2017 but rose 6 percent from last year’s average of $4.769 million. Similar to the Mid-Peninsula, San Francisco had no sales in the ultra-prime market ($20 million and above) as it has in previous quarters, seeing only one transaction top the $10 million mark in Q1 2018. The luxury market in San Francisco also had fewer closings take place than the previous year and quarter. Only 38 properties sold in this top-tier of the market in Q1 2018, down 16 percent from Q1 2017 and 38 percent from Q4 2017. However, the average turn-around time for luxury homes did speed up 12 percent year-over-year to 30 DOM — an indication that with fewer properties available within this sector, those actively looking were prepared to move quickly in order to secure their ideal property.
The North Bay saw its average sales price in the luxury sector reached $3.15 million in Q1 2018. With two properties selling for more than $10 million this quarter, the region’s average was able to climb 15 percent above the previous quarter and 8 percent above the previous year. A total of 148 luxury homes sold in the North Bay during the first quarter of the year, up 6 percent from last year. The unique nature of the North Bay’s upper-end market tends to see homes taking longer to sell than the rest of the Bay Area and this quarter continued that performance trend. The average luxury home here sold after spending 81 DOM, which was, however, a 27 percent faster pace than what occurred last year.
The East Bay’s luxury market had 385 total homes sold this quarter, the most of any region, and was up a slight 2 percent from the previous year. However, at $1.884 million in average sales price, it continues to be the most affordable luxury market in the Bay Area. The East Bay’s average luxury price point increased 4 percent from Q1 2017 but was down 2 percent from Q4 2017. Luxury homes sold here after an average of 31 DOM during the first quarter, speeding up the turn-around time up by 35 percent from the previous year and 11 percent from the previous quarter.
BAY AREA LUXURY MARKET SHARE
The largest portion of the Bay Area’s luxury market share belonged to the Mid-Peninsula at 40 percent by both unit and volume ($807 million). San Francisco accounted for 22 percent of units sold as well as 22 percent by volume ($445 million). The North Bay represented 20 percent by unit and 22 percent by volume ($438 million). The East Bay had 18 percent by unit and 15 percent by volume ($306 million). In all, there were 667 luxury homes sold across the Bay Area’s seven counties, accounting for a total of $1.997 billion in sales.