One benefit of having one of the most popular real estate resources in San Francisco is I get spammed from all angles. Occasionally, I find good bits to share with you. So thank you Coldwell Banker for this update, I’m sure all of my readers will appreciate it.
The housing market is supposed to slow down as we get deeper into the fall season and inch closer to the holidays, but something very unusual is happening here in the Bay Area. Not only is the market remaining active overall, there’s been a remarkable surge in luxury home buying – in particular, the mega-home sales.
A quick look at closed sales at the end of October caught my attention. Our company alone closed an amazing 13 sales over more than $5 million in the Bay Area just in the last two weeks of October! The vast majority of these deals were in San Francisco, the Peninsula and Silicon Valley, although one was in Healdsburg. The homes went for as much as $11.1 million, the price paid for a Los Altos Hills property.
In all, we saw the strongest October in sales volume since 2004 for the San Francisco Peninsula Region. And although we can’t share with you Coldwell Banker’s proprietary sales figures, we can tell you that this added up to a 56 percent gain from just last October.
For a market that still faces a number of economic and political headwinds, this is quite a remarkable spike in activity for the upper end of the market.
So, what do we make of all this? It’s a strong signal that the so-called “smart money” is placing some very big bets that the housing recovery is well on its way. Well-heeled investors believe that real estate today offers a tremendous value and the long-term potential is quite attractive.
Additionally, we continue to see more and more signs that the economy nationwide is gradually turning a corner. But more importantly, here at home, the Bay Area economy and job market continues to gain steam, led by Silicon Valley, the biotech sector and the investment community.
A new report released last week by the Bay Area Council adds more evidence of the Bay Area’s economic strength.