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Luxury Digs Stake out New Turf

Luxury Digs Stake out New Turf


Market forces are changing the shape of luxury locations, expanding borders to enlarge the supply of million dollar plus homes just outside of historically affluent neighborhoods.  Unlike homes at the other end of the price scale where inventory shortages fueled double digit price increases, the new growth is a result of the reviving economy

Coldwell Banker Previews International® released its first Luxury Market Index, which analyzed U.S. cities with at least 25 home sales of $1 million and higher in 2013 and ranked the best performing markets by a number of factors including annualized sales in units, volume, average and median sale price.

Topping the list was Woodside, Calif., home to venture capitalists and international entrepreneurs, was the top performing luxury market for 2013 based on critical metrics including annualized sales in units, volume and average and median sale price.  Two other hot Silicon Valley communities, Portola Valley and Hillsborough, Calif., ranked in the top five, with all based less than 30 minutes from the Northern California corporate headquarters of Apple, Facebook and Google.

Inventory is very tight in markets like Woodside, a reserved community with many homes hidden down long tree-lined driveways and private lanes, where 24 of Forbes’ richest people in America own property. Much of Woodside is owned by Stanford University, which is selling any land.  With inventory low, the ultra-wealthy are flocking to other surrounding suburbs in the region, including Portola Valley, Hillsborough and Atherton depending on their lifestyle needs.

But unlike lower tiered markets, inventory is not the real powerhouse behind today’s Silicon Valleyu boom.  Rather, the exploding tech economy, which is creating immense wealth on a daily basis when start-ups get bought out and new venture flourish.

“Demand is higher than it has been since tech economy of 1996,” says Dancer.  He tells the story of a recent sale that featured 46 showings in three days for a $5.8 million dollar listing that sold for $7.26 million

In fact, the market in Woodside is so strong that 20-25% or sales today are off list as sellers find they don’t need to bother with the MLS and the impact on privacy and security a listing entails.

Coldwell Banker Previews International Luxury Market Index

(Based on 2013 Sales)

Ranking              City        State     Index Value*

1            Woodside          Calif.     611

2            Bal Harbour       Fla.        600

3            Portola Valley    Calif.     573

4            Hillsborough      Calif.     567

5            Thousand Oaks Calif.     565

6            Glenbrook          Nev.      555

7            Arcadia Calif.     550

8            Southport          Conn.    544

9            Incline Village    Nev.      540

10          Atherton            Calif.     538

In addition to these hot luxury markets identified by the Previews® Luxury Market Index, the report also identifies the U.S. cities and ZIP codes with the most luxury home listings and sales. Below are the top 10 U.S. cities based on the number of home sales priced at $10 million and higher in 2013:

Coldwell Banker Previews International Luxury Market Report

Ranking              City        State     Number of $10 Million+ Sales in 2013

1            New York           N.Y.       43

2            Los Angeles        Calif.     27

3            Beverly Hills       Calif.     26

4            Miami Beach     Fla.        16

5            Aspen   Colo.     12

5            Palm Beach        Fla.        12

6            Malibu  Calif.     11

7            Greenwich         Conn.    8

7            San Francisco    Calif.     8

8            Atherton            Calif.     6

8            Montecito          Calif.     6

8            Laguna Beach    Calif.     6

8            Honolulu            Hawaii  6

9            Santa Barbara   Calif.     5

9            Naples  Fla.        5

9            La Jolla Calif.     5

10          Newport Beach Calif.     4

10          Pacific Palisades              Calif.     4

10          Wellington         Fla.        4

10          Newport Coast  Calif.     4

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