High-end home sales are increasing across California’s booming Bay Area, according to a report Tuesday from Pacific Union International.
When comparing May, June and July, to the same time last year, sales of homes priced above $3 million rose 32% across the entire Bay Area, especially in high-end hot spots in Alameda and Contra Costa counties, where pricey transactions rose 133% and 87% respectively.
In the same time frame, sales of homes priced below $1 million fell in all regions, especially in the San Mateo and Santa Clara counties, which both registered an almost 50% decline compared to the same three-month window last year, the report said.
In July alone, overall sales fell 3% compared to the same time last year; though undeniably in the red, the figure was a marked improvement on June, which logged a 13% annual decline in transaction numbers.
As transactions decrease in the tech-centric area, property prices are on the rise.
The median property price in the Bay Area rose to $950,000 in July, an annual increase of 12%, according to the report.
From Penta: Napa Valley’s Hall Wines to Release 2015 Vintage
All Bay Area counties posted price gains in July compared to the same time last year, ranging from 20% growth in Santa Clara County, where the median home price now stands at $1.2 million, to 6% in Napa County where a buyer can expect to part with $700,500.
San Mateo County ranks as the most expensive region in the Bay Area, where the median home price is $1.438 million, a 14% increase from July last year.
Despite the gains, the rate of median price growth has slowed in most areas except in Contra Costa, Marin, and San Mateo counties.
The slowing appreciation was “expected and is welcome,” reads the report, “as it suggests a better balance between buyers and sellers.”
Going forward, home price growth in the overall market is expected to continue slowing and possibly plateau over the next year, the report said.