Top 10 U.S. Luxury Home Markets Revealed, San Francisco Leading City
According to Coldwell Banker Previews International new Luxury Market Report, quiet and unassuming areas adjacent to traditional luxury markets have rapidly transformed into hotbeds of luxury real estate in the 12-month period from July 1, 2013 through June 30, 2014.
Leading the way and making its debut in the top 5 U.S. luxury markets for homes valued at $1 million+ is San Jose, where high-end home sales are up a staggering 76% from this time last year.
With Silicon Valley luxury real estate on fire, the affluent enclave of Atherton doubled its sales in the $10 million+ range from 2013. Burlingame, located approximately a mile from tony Hillsborough in Northern California emerged in the $10 million+ list for sold homes for the first time, most likely as the result of low inventory in the Bay Area's most sought-after ZIP codes.
Adjacency is a powerful trend playing out in high-demand luxury cities well beyond Silicon Valley and the Bay Area, notably in Miami. North Miami Beach made its debut among the top 20 cities for $10 million+ homes sold --signaling that luxury buyers are expanding their horizons beyond the typical hotspots of Miami Beach, South Beach and the private communities of Star and Fisher Islands.
Overall, San Francisco led the nation with the highest number of sales in the $1 million+ category--up nearly 57% from this time last year.
During the last 12 months through June 2014, the top ten U.S. cities with the highest number of luxury home sales valued at $1 million+ are:
The number of sales for four out of five of these top cities is up by at least 36%.
Extending the range up to the $10 million+ category, Miami Beach and Aspen have another strong showing against long standing luxury real estate epicenters New York and Beverly Hills.HIGH-NET-WORTH CONSUMER SURVEY
The U.S. high-end residential real estate market remains strong, with nearly half (48%) of all wealthy consumers indicating that they plan to purchase a luxury home within the next 12 months, according to the companion survey of wealthy U.S. consumers with a net worth of at least $5 million (penta-millionaires) conducted by the Coldwell Banker Previews International program and the Luxury Institute. Younger buyers are by far the most highly motivated to purchase: An overwhelming 81% of affluent individuals under 35 plan to buy a luxury home in the next year. Dramatic generational differences:
- Penta-millionaires 35 and under reported the highest average purchase price of all age groups - $7.8 million -- and have the largest percentage (80%) of all age groups paying all-cash.
Strong gender gaps:
- By stark contrast, wealthy buyers 45-64 paid an average of $2.7 million for their most recent home purchase while buyers 65 and older spent just $1 million.
- 70% of women reported paying all-cash for their most recent property vs. 57% of men.
- Women reported buying more expensive homes than men:
- 22% of women spent $10 million or more for their most recent property vs. 13% of men in the same wealth bracket.
Location, location, location may no longer be the golden rule of real estate:
- 46% of women have plans to buy another home in the coming year, up from 31% in 2013.
- With the ability to work remotely now a reality for many, only 25% of the under-35 age group indicate that location dominates their search criteria.
- Instead, 75% say that lifestyle considerations are the No. 1 factor driving their choice of which home to buy.
Hottest In-Demand Amenities:
- As evidence of this powerful generational shift, 86% of buyers 65 and older say that location remains their top priority.
- Nearly one-third of all wealthy buyers under the age of 45 count a "green" or "LEED certified" home as more important than it was 3 years ago.
- The trend is also catching on among wealthy buyers of all ages, with 21% saying that they want to buy an eco-friendly home, up from a mere 7% in 2013.
- As homes become increasingly high-tech, 25% now consider a fully automated home a priority.
- 37% of respondents under age 35 and 30% of those with a net worth exceeding $10 million will prioritize safe rooms in their next homes.