It was a strong year for Pleasanton luxury home sales of single family detached homes ($1 million and above price range) in 2012. Along with the continuous improvement of the lower price range homes, the luxury market also kept up the pace with strong sales activity. The continued recovery of the economy (especially in Silicon Valley and the Social Media hub of the Penninsula and San Francisco), and historically low interest rates resulted in an increase in demand for luxury homes, resulting in a steady improvement in the market throughout the year.
Inventory levels remained low for the entire Pleasanton market, which also includes the luxury homes market. The combination of low inventory and huge demand resulted in price increases of homes, especially for homes in the $1 million to $2 million range. The luxury market is strong especially in Ruby Hill, which has had strong sales and activity lately. Overall, 2013 seems to have a bright outlook for the Pleasanton luxury market.
The median prices of homes for sale in 2012 remained almost the same but the price per square foor has gone up by almost 4%, with sales prices nearer to asking prices than in 2011. Days on the market were low for luxury homes and overall luxury home sales went up 14%, even with an inventory that went down by 25%. (click chart to enlarge).
Median sales price of luxury homes was at $1,370,000, which was $2,500 less than 2011. As seen in the chart below, there have been more sales of luxury homes in the $2 million and above price range in 2012 than in the previous years. which boosted the median sales price. In 2012, average sales price per square foot was $352, which is higher by $13 than in 2011. Luxury homes sold for an average of 96% of the asking price in 2012, which is slightly up from 95% in 2011. (click chart to enlarge)
In 2012, there were a total sales of 165 luxury homes which is 19 more than in 2011. The chart below shows that monthly sales were higher for almost all months in 2012 than in their counterparts in 2011. (Click on Chart to Enlarge)
There were a total of 31 luxury homes for sale at the end of 2012, which is 46% lower than the 58 available homes at the end of 2011. Average monthly inventory of homes was 62, which is 25% lower than the 82 homes in 2011. In 2012, there was an average of 3.0 months which is 50% less than the 6.25 months average in the previous year.
Luxury homes stayed on the market for 48 days on average. fewer by 9 in 2011. Fewer distressed luxury homes (short sales or REO) homes were also a positive factor in the market. Of all the luxury homes for sale, only 10% were distressed, compared to 2011's 15%.
Luxury homes made up 24% of all home sales in Pleasanton in 2012, which slightly higher than 23% in 2011. The mix within the luxury market geared towards the high end during 2012, with sales of 35% in the $2 million and above price range, which is higher than 2011's 28%.
If you want to read the rest of the report and find out the overview by price range and area, you could read the entire report here:
Pleasanton Luxury Market Year in Review 2012
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