The technology industry continues to pump up the demand for luxury homes in Silicon Valley, leading to over 40% year-over-year increase in $3 million-plus sales in the second quarter.
Prices, though, remained largely flat over the same time period, according to a report Thursday.
There were 319 sales of at least $3 million in the southern San Francisco Bay Area, where tech giants, venture capitalist and media firms such as Google, Apple, eBay and Netflix are headquartered. It increased 42% compared to 224 sales during the same period last year, according to Coldwell Banker Residential Brokerage, citing data from the Santa Clara County Multiple Listing Service.
In June alone, 102 homes sold in the top-tier price ranges, jumping 13% from a year ago.
However, the median sales price slipped 1% year-over-year in the second quarter to $3.7 million, with six homes selling above $10 million. The most expensive home was a four-bedroom house in Palo Alto that closed in April for $18 million.
“Prices in the luxury arena in Silicon Valley remain steady, however more homes are selling at a much quicker pace than we have seen in the past,” said Nancy Robinson, regional vice president of the brokerage.
On average, it took only 29 days for a luxury home in Silicon Valley to sell, 17 days faster than the 46-day average during the second quarter of 2017, according to the report.
“The high demand to purchase homes in our market makes it essential for buyers to act quickly and be willing to pay at or slightly above asking price,” Ms. Robinson said.
Overall market in Bay Area Cools in June
However, the overall market in the broader San Francisco Bay area, which comprises seven counties, including Santa Clara and San Mateo, showed signs of softening in June, according to a separate report Thursday by brokerage Pacific Union International.
The number of sales declined 13% year-over-year last month, with homes priced at less than $1 million posting the deepest decline, at 28%. Sales of homes priced between $1 million and $2 million increased by 8% while sales of $2-million-plus homes rose 14%.
The high-end market fared better. The number of $3-million-plus sales grew 24% on an annual basis, according to Pacific Union International.
Across the region, median home prices rose 16% in June from a year ago, ranging from 9% growth in San Francisco to a 23% gain in Santa Clara County, according to the report, which doesn’t provide absolute values of all the market metrics it uses.