Regional Spotlight: Sales Trends for Northern California’s High-end Homes

RISMEDIA, Oct. 23, 2007-For the third consecutive quarter in seven Northern California counties served by Alain Pinel Realtors (APR), more luxury-class homes sold at $2.5 million or greater while inventory remained relatively constant in the high-end market of homes listed for sale at $1.5 million or greater.

From July 1 to September 30, 227 homes sold for $2.5 million or greater in San Francisco, San Mateo, Santa Clara, Santa Cruz, Monterey, Alameda and Contra Costa counties, compared with 195 homes sold in these seven counties during the third quarter 2006 – an increase of approximately 15%. The highest-priced home sold during the third quarter this year was in Atherton, for $26 million. During the second quarter this year, 333 homes sold in the seven counties for $2.5 million or greater; by comparison 314-luxury-class homes sold in the second quarter 2006. In the first quarter this year, 172 homes were sold in this category versus 169 homes sold at $2.5 million or greater in the first quarter 2006.

During the third quarter 2007, total sales volume increased significantly in five of the seven counties, while the East Bay counties of Alameda and Contra Costa retreated. Monterey County led the way with a 53.74 increase in total sales volume of homes sold at $2.5 million or greater.

Inventory of homes with listing prices of $1.5 million or greater bumped up less than one percent, with 1,164 homes on the market in the seven counties as of Sept. 30, versus 1,157 comparably-priced homes for sale at the end of the third quarter 2006. During the second quarter this year, inventory of homes offered for sale at $1.5 million or greater declined roughly 5% in the seven counties, with 1,089 listed for sale at the end of the period compared with 1,150 homes on the market at $1.5 million or greater in the end of the second quarter 2006.

During the third quarter 2007, Alain Pinel Realtors’ sales professionals participated in 168 homes that sold between $1.5 million and $2.499 million, 64 homes that sold from $2.5 million to $4.99 million and 15 homes that sold for more than $5 million.

The information on high-end and luxury-classed real estate sales trends is based on public records researched from the leading multiple listing services in region (SFMLS, REINFO and MAXEBRD). The quarterly data is compiled specifically for Alain Pinel Realtors by TrendGraphix Inc., a leading real estate information services provider based in Sacramento.

Third Quarter 2007 Sales Trends Alain Pinel Realtors’ DH&E Report

Santa Clara County

In Santa Clara County, the median sales price of homes sold at $2.5 million or greater increased 8.63% in the third quarter this year compared with the same period a year ago, rising from $3 million per home to $3.259 million per home. Unit count increased also, with 68 homes sold during the recent quarter at $2.5 million or greater, compared with 54 homes sold in this price range during the second quarter 2006. A Palo Alto home sold for $9.75 million – more than any recorded sale in Santa Clara County during the recent quarter. Inventory of homes listed at $1.5 million or greater declined a modest 6.63%, dropping from 347 at the end of the third quarter in 2006 to 324 homes on the market at the end of the recent quarter.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $234,717,466
Units Sold: 68
Highest Price: $9.750 million (Palo Alto)
Period 3Q 2006
Total Sold: $177,978,001
Units Sold: 54

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 324
Listed Median: $1,850,000
Units Sold: 275
Period 3Q 2006
Listed: 347
Listed Median: $1,875,000
Units Sold: 241

San Mateo County

The luxury and high-end real estate market in San Mateo County was one of the strongest performing counties in APR’s quarterly survey. Inventory of homes listed at $1.5 million or greater declined by 22.14%, from 171 homes on the market at the end of the third quarter 2006 to 140 available homes for sale at this benchmark rate at the close of the recent quarter. Luxury-class homes sold at $2.5 million or greater were absorbed at a greater rate of 35.29%, with 69 sold during the recent quarter compared with 51 in the third quarter 2006. The most expensive home sold in the seven counties monitored by Alain Pinel Realtors during the recent quarter was in San Mateo County, with an Atherton home selling for $26 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $285,597,000
Units Sold: 69
Highest Price: $ 26,000,000 (Atherton)
Period 3Q 2006
Total Sold: $ 190,069,000
Units Sold: 51

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 171
Listed Median: $1,850,000
Units Sold: 132
Period 3Q 2006
Listed: 140
Listed Median: $1,850,000
Units Sold: 135

Alameda County

Fewer luxury-class Alameda County homes sold in the third quarter than the same period a year ago – 10 versus 16, a 37.5% decline, while inventory of homes listed at $1.5 million or greater increased from 123 at the end of the third quarter 2006 to 138 at the close of the recent quarter – a 12.2% increase. The median sale price of homes sold for $1.5% or greater increased, however, from $1.698 million per home at the close of the third quarter 2006 to $1.8 million per home in the recent quarter. The most expensive home sold in Alameda Country during the recent quarter was in Pleasanton, for $3.15 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $28,650,000
Units Sold: 10
Highest Price: $3,150,000 (Pleasanton)
Period 3Q 2006
Total Sold: $54,870,320
Units Sold: 16

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 138
Listed Median: $1,846,944
Units Sold: 63
Period 3Q 2006
Listed: 123
Listed Median: $1,798,000
Units Sold: 68

Contra Costa County

Sales of high-end and luxury-class Contra Costa County homes in the third quarter were comparable to the same period a year ago, with 24 homes sold in the recent period at $2.5 million or greater compared with the same number – 24, a year earlier. More homes sold for $1.5 million or greater in the recent quarter – 101 compared with 91 in the third quarter 2006, a 10.99% increase. Inventory declined slightly in the $1.5 million or greater category, from 215 listed for sale at the end of the third quarter 2006 compared with 210 on the market at the close of the recent quarter. The most expensive home sold in Contra Costa during the recent quarter was in Alamo, for $3.9 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $73,296,000
Units Sold: 24
Highest Price: $3,900,000 (Alamo)
Period 3Q 2006
Total Sold: $81,380,000
Units Sold: 24

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 210
Listed Median: $1,895,000
Units Sold: 101
Period 3Q 2006
Listed: 215
Listed Median: $1,775,000
Units Sold: 91

San Francisco County

A constant observation of the luxury-class and high-end real estate market in San Francisco is that inventory is chronically low and the consistent numbers in both categories seems to reinforce the trend. At the end of the third quarter 2007, 55 San Francisco homes were listed for sale at $1.5 million or greater, compared with 59 at the close of the same period a year earlier. There were slightly more homes listed for $2.5 million or greater, rising from 48 at the end of the third quarter 2006 to 53 on the market for sale at this benchmark rate at the end of the recent quarter. Sales were similar in both categories; 52 homes sold for $1.5 million or greater in the recent quarter – the same number as the third quarter 2006, while 25 homes were sold in the recent quarter at $2.5 million or greater, compared with 27 during the same period a year ago. The most expensive home sold in San Francisco during the recent quarter traded for $19.5 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $122,333,500
Units Sold: 25
Highest Price: $19,500,000 (San Francisco)
Period 3Q 2006
Total Sold: $96,571,000
Units Sold: 27

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 55
Listed Median: $1,850,000
Units Sold: 52
Period 3Q 2006
Listed: 59
Listed Median: $1,799,000
Units Sold: 52

Santa Cruz County

The same number of Santa Cruz County homes sold for $2.5 million or greater in the recent quarter as in the third quarter a year ago, with five luxury-class homes changing owners, while 16 homes sold in the recent quarter at $1.5 million or greater compared with 20 in the third quarter of 2006. Inventory was comparable at both benchmark levels. At the close of the recent quarter, 79 Santa Cruz County homes were listed for sale at $1.5 million or greater, versus 75 at the end of the third quarter 2006. At the upper end – homes for sale at $2.5 million or greater, 54 homes were on the market at the close of the recent quarter compared with 50 at the end of the third quarter 2006. The most expensive home sold in Santa Cruz County during the recent quarter was in Seacliff, for $4.295 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $15,570,000
Units Sold: 5
Highest Price: $4,295,000 (Seacliff)
Period 3Q 2006
Total Sold: $13,445,000
Units Sold: 5

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 79
Listed Median: $1,950,000
Units Sold: 16
Period 3Q 2006
Listed: 75
Listed Median: $1,899,000
Units Sold: 20

Monterey County

Of the seven counties monitored by Alain Pinel Realtors’ quarterly survey of luxury-class and high-end home sales, Monterey County total sales volume for homes sold at $2.5 million or greater increased the most on a percentage basis, jumping from $71 million during the third quarter 2006 to $109 million in the recent quarter – a 53.74% increase. Units sold at this benchmark level increased from 18 homes in the third quarter a year ago to 26 sold in the recent quarter, while the median sale price also increased from $3.25 million per home in the third quarter 2006 to $3.4 million per home in the recent quarter. Inventory of homes for sale listed at $1.5 million or greater declined slightly – 5.56%, with 187 Monterey County homes listed for sale at the end of the recent quarter compared with 198 homes on the market at this benchmark rate during the same period a year ago. The most expensive home sold in Monterey County during the recent quarter was in Pebble Beach, for $9.2 million.

Luxury Sales
DH&E base rate $2.5 million +
Period 3Q 2007
Total Sold: $108,803,382
Units Sold: 26
Highest Price: $9,200,000 (Pebble Beach)
Period 3Q 2006
Total Sold: $70,769,650
Units Sold: 18

INVENTORY/High-end Sales
DH&E base rate $1.5 million +
Period 3Q 2007
Listed: 187
Listed Median: $1,885,000
Units Sold: 43
Period 3Q 2006
Listed: 198
Listed Median: $1,895,000
Units Sold: 43

For more information, visit www.apr.com or call 408-741-1111.

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