The number of California homes that sold for $1 million or more in 2010 rose for the first time in five years, a sign that certain segments of the economy improved and high-end home shoppers went bargain hunting, a real estate information service reported. Cupertino, Saratoga, Menlo Park, Los Altos, Palo Alto and San Jose were among 25 communities that saw the highest gain of million-dollar homes sold last year.
Statewide, 22,529 homes sold for $1 million or more last year, up 21 percent from 2009 and the highest level since 2008, when 24,436 homes sold for $1 million-plus, according to the DataQuick report. Million-dollar sales peaked in 2005 at 54,773, after which they declined each year through 2009.
Cupertino (zip 95014), which ranked fourth on DataQuick Information Systems' list of communities with the highest number of sales of million-dollar homes in 2010, saw its sales in this segment of the market jump from 215 in 2009 to 282 in 2010, with the most expensive home priced at $3.10 million. Saratoga (zip 95070) ranked fifth, with 282 sales in 2010, up from 206 in 2009 and the most expensive home at $5 million. In Menlo Park, 254 million-dollar homes sold in 2010, up by two from 2009, with the highest-priced home at $5.30 million; Los Altos (zip 94024), 243 homes sold in 2010, up from 211 homes, most expensive home $4.75 million; Los Altos (zip 94022), 218 homes sold in 2010, up from 174, most expensive home $6.15 million; Palo Alto (zip 94306), 181 homes sold in 2010, up from 145, most expensive home $2.97 million. San Jose zip 95120 also had its share of million-dollar homes, with 179 sold in 2010, up from 131, with the most expensive home at $3.50 million.
"It's not surprising that the high-end market has remained strong in our Silicon Valley neighborhoods. People buying in these areas will typically have higher income and are willing to pay more for a prime location. Our excellent schools and higher education institutions, highly educated workforce, and a great mix of shopping and services make the region ideal," said Gene Lentz, president of the Silicon Valley Association of REALTORS®.
Statewide, the median-sized million-dollar home was 2,840 sq.ft., with four bedrooms and three bathrooms. The median price paid per square foot for all million-dollar homes in 2010 was $601, down from $605 in 2009.
In 2010, 29.4 percent of the $1 million-plus buyers paid cash, up from 28.9 percent in 2009. Among those who financed their purchase, the median down payment was 40 percent.
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. Property swaps, sales of multiple lots, sales where no price or loan amount was available, teardowns, and large farm or ranch properties were not included.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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