Million-Dollar Home Sales Up Again in the Golden State

July 31, 2014

La Jolla, CA.----The number of California homes that sold for a million dollars or more rose to its highest level in seven years last quarter, the result of rising home prices and an improving economy. The luxury market's high end continues to do best, with record sales above the $2 million mark, a real estate information service reported.

A total of 12,826 homes sold for a million dollars or more during the April-through-June period. That was up 60.4 percent from 7,994 during this year's first quarter, and up 9.1 percent from 11,758 in second-quarter 2013. Last quarter's $1 million-plus sales were the highest for any quarter since 13,681 homes sold for $1 million or more in second-quarter 2007, according to CoreLogic DataQuick.

The all-time high was third-quarter 2005, when 15,898 Golden State homes sold for a million dollars or more.

The nine-county San Francisco Bay Area stood out last quarter: The 5,734 sales there of $1 million or more represented an all-time high. The previous peak was 5,699 in second-quarter 2005.

While statewide $1 million-plus home sales rose 9.1 percent year-over-year in the second quarter, total sales across all price categories fell 7.4 percent.

Two of the main reasons for the increase in $1 million-plus sales are increased demand, and robust price appreciation that over the past year has pushed more homes up over the million-dollar threshold.

"It's always fascinating to watch this part of the real estate market. It behaves differently, responds to its own set of criteria. These buyers, especially those in the multi-million-dollar market, are less likely to agonize over credit scores, income and job security, down payments and mortgage interest rates," said Andrew LePage, CoreLogic DataQuick analyst.

"While we can only speculate, it seems self-evident that luxury home buyers have substantial assets, and they're constantly evaluating where to park those assets. Right now it's interesting that there appears to be enough inventory to meet the demand for luxury homes. That's not always the case in many mid-priced and lower-cost housing markets, where demand continues to outweigh supply," LePage said.

A total of 265 homes sold for more than $5 million last quarter, an all-time high. In the $4-$5 million range, a record 213 homes sold. In the $3-$4 million range, 469 homes sold, also a record. In the $2-$3 million range, 1,595 homes sold, another high.

In the $1-$2 million range, 8,381 sold last quarter, still behind the record 9,885 sold in second-quarter 2005.

There were 1,923 sales where the price was unavailable, but where it could be determined that the price exceeded $1 million because of the size of the mortgage.

San Diego-based DataQuick was acquired in March by Irvine-based CoreLogic, a leading global property information, analytics and data-enabled services provider. CoreLogic DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The million-dollar transactions include home sales where it could be determined from public records that there was a buyer, a seller, that money changed hands, and that there was a legal transfer of property ownership. Not included were property swaps, sales of multiple lots, sales where no price or loan amount was available, teardowns, and large farm or ranch properties. Sales to companies and trusts were included.

Last quarter 3,882 of the homes that sold for $1 million or more were purchased with cash. In the luxury market, the higher the price, the more frequently cash was used. Of those who did finance their purchase last quarter, the median down payment was 30.0 percent of the purchase price.

The lending institutions most willing to provide mortgage financing for homes that sold for $1 million-plus were Wells Fargo, Union Bank and Bank of America.

The most expensive confirmed purchase last quarter was a 11,637-square-foot, 4-bedroom, 6-bathroom Westwood mansion built in 1931 which sold for $45,000,000 in May. The largest was a 16,840 sq.ft. 6-bedroom, 13-bathroom mansion in Indian Wells that sold for $4.5 million.

In some communities virtually all home sales were in the million-dollar category. Among them: Hillsborough, Rancho Santa Fe, Atherton and Los Altos.

Newly-built homes accounted for 8.8 percent of last quarter's $1 million-plus sales. Condo sales made up 10.1 percent. Most $1 million-plus condos were sold in Los Angeles, San Francisco and San Diego counties.

The median-sized $1 million-plus home was 2,400 sq.ft. with 4 bedrooms and 3 bathrooms. The median price paid per square foot for all million-dollar homes last quarter was $729, up 7.6 percent from $678 in second-quarter 2013. For the overall California market, the square-foot median was $226 last quarter, up 13.0 percent from $200 in second-quarter 2013, CoreLogic DataQuick reported.

There are 8.85 million houses and condos in California. Of those, 277,666 are assessed for more than a million dollars by county assessor offices, CoreLogic DataQuick reported.

 

Million Dollar Home Sales
Ranked by number of $1 million-plus sales

2013Q2 2014Q2 2014Q2's Most
Zip Community Sales# Sales# Expensive
90266 Manhattan Beach 144 146 $12.0 mill.
94010 Hillsborough 131 144 $12.9 mill.
95120 San Jose 99 137 $3.0 mill.
92130 Del Mar 128 136 $6.0 mill.
95014 Cupertino 106 120 $3.3 mill.
94539 Fremont 98 117 $5.8 mill.
92651 Laguna Beach 115 115 $17.5 mill.
94941 Mill Valley 88 114 $5.9 mill.
92037 La Jolla 149 110 $13.0 mill.
94506 Danville 87 110 $3.1 mill.
94025 Menlo Park 119 109 $5.0 mill.
95070 Saratoga 108 108 $5.9 mill.
90272 Pacific Palisades 113 107 $20.5 mill.
92660 Newport Beach 141 106 $4.0 mill.
90049 Brentwood 126 105 $40.0 mill.
90210 Beverly Hills 104 101 $13.5 mill.
95032 Los Gatos 83 101 $6.3 mill.
94526 Danville 61 88 $3.2 mill.
94549 Lafayette 73 87 $4.5 mill.
90274 Rolling Hills Estates 90 86 $8.0 mill.
94566 Pleasanton 61 85 $3.1 mill.
94070 San Carlos 91 84 $2.9 mill.
94611 Piedmont 69 84 $4.5 mill.
94022 Los Altos 84 81 $8.9 mill.
90046 Hollywood 65 79 $4.5 mill.

 

Source: DataQuick; DQNews.com

Media calls: Andrew LePage (916) 456-7157

Copyright 2014 DataQuick Information Systems. All rights reserved.

California August Home Sales

September 11, 2014

Bay Area Home Sales Slow in August; Prices Increases Ease Back

September 11, 2014

Southland Home Sales Sputter; Median Sale Price Hits 80-Month High

September 11, 2014

Las Vegas Region July Home Sales

August 27, 2014

California July Home Sales

August 14, 2014

Sluggish Bay Area Home Sales in July; Prices Up – at a Slower Pace

August 14, 2014

Southland Home Sales Fall Yr/Yr Again; Prices Rise at Slower Pace

August 13, 2014

Las Vegas Region June Home Sales

August 8, 2014

Million-Dollar Home Sales Up Again in the Golden State

July 31, 2014

California Foreclosure Starts Lowest Since 2005

July 17, 2014

California June Home Sales

July 16, 2014

Bay Area Home Sales Up Slightly; Price Increases Slow

July 16, 2014

Southland Home Sales Down from Last Year Again; Price Gains Throttle Back

July 15, 2014

Seattle Region May Home Sales

July 1, 2014

Miami Region May Home Sales

June 30, 2014

Las Vegas Region May Home Sales

June 25, 2014

California May Home Sales

June 12, 2014

Bay Area Home Sales Constrained by Supply; Prices Continue to Rise

June 12, 2014

Southland Home Sales Slow; Median Price Rises Again but at Slower Pace

June 11, 2014

Portland Region April Home Sales

June 5, 2014

Phoenix Region February Home Sales

June 4, 2014

Las Vegas Region April Home Sales

May 28, 2014

California April Home Sales

May 14, 2014

Bay Area Home Prices Continue to Rise; Sales Up from March, Flat Yr/Yr

May 14, 2014

Faster Pace for Southland Home Sales; Median Sale Price Edges Higher

May 13, 2014

Seattle Region March Home Sales

May 9, 2014

Miami Region March Home Sales

May 7, 2014

Las Vegas Region March Home Sales

April 29, 2014

California Foreclosure Starts Hover Near 8-Year Low

April 22, 2014

California March Home Sales

April 16, 2014

Bay Area Median Sale Price Highest Since 2007; Slowest March Sales in 6 Years

April 16, 2014

Southland Home Sales Stuck at 6-year Low; Median Price Rises to 6-Year High

April 15, 2014

Phoenix Region February Home Sales

April 1, 2014

Las Vegas Region February Home Sales

March 27, 2014

California February Home Sales

March 13, 2014

Bay Area home sales slowest since 2008

March 13, 2014

Southern California February Home Sales Lowest Since 2008

March 12, 2014

Portland Region January Home Sales

March 6, 2013

Seattle Region January Home Sales

March 4, 2014

Miami Region January Home Sales

January 27, 2014

Las Vegas Region January Home Sales

February 25, 2014

California January Home Sales

February 13, 2014

Bay Area Home Sales Slowest for a January Since 2008

February 13, 2014

Southland Home Sales Drop in January; Price Picture Mixed

February 12, 2014

Las Vegas Region December Home Sales

February 7, 2014

Million-Dollar Home Sales Jump in the Golden State

January 30, 2014

California Foreclosure Starts Dip to Eight-Year Low

January 21, 2014

California December Home Sales

January 15, 2014

Bay Area Home Sales Drop to Six-Year Low; Prices Still Up Sharply Yr/Yr

January 15, 2014

Southland December Home Sales at Six-Year Low; Median Price Jumps

January 14, 2014

Portland Region November Home Sales

January 9, 2014

Seattle Region November Home Sales

January 2, 2014