Luxury Real Estate Market Booming in California
Sales of California luxury homes, those sold for a million dollars or more, rose last year to the highest level in six years. Rising home prices, an improving economy, rising demand and sharp price appreciation were among many factors that contributed to this increase. The high end real estate market saw the strongest gains, with record home sales above the $2 million mark.
In 2013, a total of 39,175 luxury homes were sold. That is up 45.1% from 26,993 the previous year. That figure is the highest number sold since 2007, according to DataQuick, a San Diego-based real estate research company. The record was set in 2005, when 54,773 homes sold for $1 million or more. 2013’s 45.1% year-over-year increase in $1 million-plus sales easily outshines the rest of California’s housing market as a whole. Overall home sales were down 0.6% from last year.
John Walsh, DataQuick president, said this about the luxury real estate market:
“The luxury home market is unique, always has been. It responds to its own set of economic factors. Things like job growth, mortgage interest rates and migration patterns do not play the same role as IPOs, stock market performance or how well one type of investment does compared to another, and where one wants to park one’s excess money. The $2 million threshold seems to be a more interesting cutoff point. Homes selling below that level do seem more responsive to the more traditional market factors.”
Across California, 840 multi-million dollar homes sold for more than $5 million last year. This is an all time high up 20.3% from the previous record set in 2012. The $4-$5 million range of luxury home sold a record 596 homes, which is an increase of 29.3% from last year. In the $3-$4 million range, a record 1,455 homes sold, up 31.3% from 1,108 in 2012. In the $2-$3 million range sales totaled 4,492, a record and up 37.4% from 3,269 in 2012. In the $1-$2 million range, 25,352 sold last year, up 42.5% from 17,791 in 2012.
Cash buyers dominated the $1 million or more luxury housing market. A record 10,602 homes were bought with cash. Many markets, such as La Jolla, saw many of the home sales in the million-dollar category. Last year, the median sized million-dollar home sold in the state was 2,504 square feet, with 4 bedrooms and 3 bathrooms. The median price paid per square foot for all $1 million-plus homes in 2013 was $682, up 6.9% from $637 in 2012. For the overall California market, the square-foot median was $208 last year, up 28.1% from $162 in 2012, DataQuick reported. Homes that were newly build accounted for 6.9% of last year’s luxury home sales. This is up 4.9% from the previous year. Most of the million dollar condominiums were sold in Los Angeles, San Francisco and San Diego counties.
According to DataQuick, here are the Luxury Home Sales for 2013:
Million Dollar Home Sales, ranked by 2013 sales #s
|90266||Manhattan Beach||372||439||$9.5 mill.|
|92037||La Jolla||345||398||$18.5 mill.|
|92660||Newport Beach||362||376||$16.5 mill.|
|92651||Laguna Beach||307||374||$33.0 mill.|
|90210||Beverly Hills||330||360||$29.6 mill.|
|90272||Pacific Palisades||303||352||$17.5 mill.|
|94025||Menlo Park||370||321||$5.5 mill.|
|92130||Del Mar||225||310||$5.8 mill.|
|90274||Rolling Hills Estates||262||297||$8.8 mill.|
|95120||San Jose||167||275||$5.0 mill.|
|94022||Los Altos||255||267||$14.3 mill.|
|90275||Rancho Palos Verdes||205||265||$4.5 mill.|
|94941||Mill Valley||215||258||$4.9 mill.|
|94024||Los Altos||311||257||$14.2 mill.|
|94070||San Carlos||189||256||$4.0 mill.|
|92625||Corona Del Mar||256||252||$8.0 mill.|
|92657||Newport Beach||228||252||$15.8 mill.|
|95032||Los Gatos||213||243||$4.8 mill.|
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