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Luxury Real Estate Market Booming in California

luxury-real-estate-market-la-jolla

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

 2012 2013 2013’s Most
Zip Community Sales# Sales# Expensive
90266      Manhattan Beach       372      439         $9.5 mill.
94010      Hillsborough       422      436        $13.3 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.
90049      Brentwood       344      371        $16.0 mill.
90210      Beverly Hills       330      360        $29.6 mill.
90272      Pacific Palisades       303      352        $17.5 mill.
95070      Saratoga       364      332        $12.3 mill.
94025      Menlo Park       370      321         $5.5 mill.
95014      Cupertino       297      317         $3.8 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.
94062      Woodside       208      273        $12.0 mill.
90265      Malibu       219      269        $74.5 mill.
94022      Los Altos       255      267        $14.3 mill.
90275      Rancho Palos Verdes       205      265         $4.5 mill.
94539      Fremont       240      258         $3.6 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.

Thinking of buying or selling a home in the La Jolla area? As consistent Top Producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying, selling and investing to financing options and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.