Peninsula and South Bay grab majority of $5M+ home sales

When it comes to luxury homes, local buyers are stampeding to San Mateo and Santa Clara counties, the Silicon Valley Business Journal reported, citing a report from Compass.

The study looked at homes sold for $5 million or more. From Jan. 1 through Aug. 15, 206 properties in that segment sold in Santa Clara County and 196 in San Mateo County, according to the report. Together, they made up 55 percent of the Bay Area’s 730 total luxury home sales this year.

San Francisco was a distant third with 97 sales, 8 percent of which were condos or co-ops. That was followed by 84 sales in Marin County, 58 in Monterey County and 30 in Napa.

Outside of San Francisco, the city of Hillsborough saw the most $5 million-plus sales this year with 56, followed by Palo Alto and Carmel/Pebble Beach with 53 each.

Within San Francisco, Pacific Heights and Presidio Heights had 38 of the city’s luxe sales, with Noe/Eureka/Cole valleys claiming 28.

Santa Clara County also had the highest number of active $5 million-and-up listings in mid-August at 97, followed by San Mateo with 78 and San Francisco at 62.

Santa Clara and San Mateo counties also tallied the most pending luxury sales as of Aug. 15 with 25 in San Mateo County and 16 in Santa Clara. Sonoma County was next with 12 pending luxury sales.

For uber luxe homes of $10 million and more, San Mateo County has recorded the most sales this year with 41, followed by Monterey County at 16, according to the Compass report. San Mateo has the most active listings in this category.

Bay Area luxury home sales have cooled in recent months, with buyer demand impacted by inflation, interest rates and volatile financial markets, said Compass Chief Market Analyst Patrick Carlisle.

The luxury market is most affected by financial markets, he said, which continue to see dramatic stock price fluctuations.

Compared to July 2021 when there were 122 sales of $5 million-plus homes in the Bay Area, July 2022 only recorded 75. This number has steadily decreased from a high of 149 back in May, at which point the figure had actually eclipsed May 2021’s total of 128 luxury sales, according to the Compass report.
— Dana Bartholomew

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