Alain Pinel Realtors’ Fourth-Quarter 2007 Market Report on Northern California

Posted by Gary Marsh — February 5, 2008

SARATOGA, Calif. – (Feb. 6, 2008) – For the fifth consecutive quarter in seven Northern California counties served by Alain Pinel Realtors, more luxury-class homes sold at $2.5 million or greater. Inventory of homes available for purchase varied from county-to-county in the high-end market of homes priced from $1.5 million to $2.499 million.From October 1 to December 31, 195 homes sold for $2.5 million or greater in San Francisco, San Mateo, Santa Clara, Santa Cruz, Monterey, Alameda and Contra Costa counties, compared with 174 homes sold in these seven counties during the fourth quarter 2006 – an increase of approximately 11 percent. The highest-priced home sold during the fourth quarter of 2007 was in San Francisco for $16 million.During the fourth quarter 2007, total sales volume for homes over $2.5 million increased significantly in San Francisco (57.29%), Santa Cruz (+35.58%) and Contra Costa (+35.09%) counties. Santa Clara County sales volume was up 16.01%, San Mateo County slightly positive at +2.05% while sales volume in this category was off in Monterey and Alameda counties.TOTAL SALES VOLUME BY COUNTY, 4th Quarter 2007 HOMES SOLD $2.5 MILLION + (numbers rounded up to nearest million)Monterey County Total Sales Volume 4Q 2007 $84M vs. $97 M 4Q 2006 = -13.76%San Mateo County Total Sales Volume 4Q 2007 $223M vs. $218M 4Q 2006 = +2.05%Santa Clara County Total Sales Volume 4Q 2007 $168M vs. $145M 4Q 2006 = +16.01%San Francisco County Total Sales Volume 4Q 2007 $197M vs. $125M 4Q 2006 = +57.29%Santa Cruz Total Sales Volume 4Q 2007 $17M vs. $12.8M 4Q 2006 = +35.58%Alameda County Total Sales Volume 4Q 2007 $38M vs. $39M 4Q 2006 = -0.98%Contra Costa County Total Sales Volume 4Q 2007 $28M vs. $21M 4Q 2006 = +35.09%Inventory of homes with listing prices of $1.5 million or greater changed only slightly, with 707 homes on the market in the seven counties as of December 31, versus 702 comparably-priced homes for sale at the end of the fourth quarter 2006.One of the trends that emerged over a year ago in the high-end and luxury real estate markets is carrying over into 2008, and that is the chronic lack of inventory for San Francisco homes priced at $1.5 million or greater. At the close of the fourth quarter last year, only 18 homes were offered for sale from $1.5 million to $2.5 million, and 30 homes were on the market at $2.5 million and more. Even at the height of the home selling season -- considered to be the third quarter ending Sept. 30, only 55 San Francisco homes were offered for sale from $1.5 million to $2.5 million and just 53 homes were listed greater than $2.5 million. For a city of its size and affluence, the supply of homes for sale continues to lag demand in these price points.During the fourth quarter 2007, Alain Pinel Realtors’ sales professionals participated in 149 Bay Area homes that sold between $1.5 million and $2.499 million, 58 homes that sold from $2.5 million to $4.99 million and 11 homes that sold for more than $5 million.The information on high-end and luxury-classed real estate sales trends is based on public records researched from the leading multiple listing services in region (SFMLS, REINFO and MAXEBRD). The quarterly data is compiled specifically for Alain Pinel Realtors by TrendGraphix Inc., a leading real estate information services provider based in Sacramento.For greater detail on sales trends by county, please see the balance of the report.Fourth Quarter 2007 Sales Trends Alain Pinel Realtors’ DH&E ReportSanta Clara CountyIn Santa Clara County, 50 homes sold in the quarter for $2.5 million or greater, an increase of 16.28 percent over the 43 that sold in the same quarter 2006. A Palo Alto home sold for $8.25 million – more than any recorded sale in Santa Clara County during the recent quarter. Fewer homes sold in the quarter priced from $1.5 million to $2.499 million – 186, compared with 209 sold in the fourth quarter 2006, or an 11 percent decline. Inventory of homes listed at $1.5 million or greater increased 11.4 percent, going from 193 at the end of the fourth quarter in 2006 to 215 homes on the market at the end of the recent quarter.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $167,749,151 Units Sold: 50 Highest Price: $8,250 million (Palo Alto) Period 4Q 2006Total Sold: $144,641,500 Units Sold: 43INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 215Listed Median: $1,848,000 Units Sold: 186  Period 4Q 2006Listed: 193Listed Median: $1,888,000 Units Sold: 209San Mateo County In San Mateo County, 58 homes sold for $2.5 million or greater in the fourth quarter, compared with 54 in the same quarter a year earlier – a 7.41 percent increase, while inventory at this benchmark level fell 12.05 percent with 73 homes available for purchase at the end of 2007 versus 83 on the market at the close of the fourth quarter 2006. Conversely, inventory of homes priced from $1.5 million to $2.499 million shot up 20.29 percent to 83 homes listed for sale, compared with 69 at the end of the fourth quarter 2006. The most expensive home sold in San Mateo County during the fourth quarter was a Woodside home, for $11.9 million.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $222,753,720 Units Sold:  58 Highest Price: $ 11,900,000 (Woodside)Period 4Q 2006Total Sold: $ 218,277,800 Units Sold:  54INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 83Listed Median: $1,825,000Units Sold: 122Period 4Q 2006Listed: 69 Listed Median: $1,850,000 Units Sold: 103 Alameda County More Alameda County home owners choose to list their high-end and luxury-priced homes for sale in the fourth quarter than they did in the same period a year earlier. Inventory jumped 77.78 percent in the quarter for homes offered from $1.5 million to $2.499 million, or 144 homes listed for sale at the end of 2007 versus 81 at the close of 2006. The spike in inventory was less pronounced for homes listed at $2.5 million or greater – a 10.64 percent increase, with 52 homes on the market at the end of the quarter compared with 47 at the end of the fourth quarter 2006. Sales slid a bit in the $1.5 million and greater category – 43 in the quarter versus 52 in the fourth quarter a year earlier, but prices held steady as the sold median at this benchmark level was $1.763 million compared with $1.695 million a year earlier. The most expensive home sold in Alameda County during the recent quarter was in Piedmont, for $7.6 million.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $38,196,250 Units Sold: 11 Highest Price: $7,600,000 (Piedmont)Period 4Q 2006Total Sold: $38,574,000Units Sold: 12INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 144  Listed Median: $1,850,000 Units Sold: 43Period 4Q 2006Listed: 81Listed Median: $1,800,000Units Sold: 52Contra Costa County Contra Costa residents took the opposite tact of their Alameda neighbors, putting far fewer homes on the market during the fourth quarter 2007 compared with the same quarter a year earlier. Homes offered from $1.5 million to $2.499 million declined sharply, to 50, versus 130 at the end of 2006; it was a 61.54 percent drop in inventory. In the luxury-class category $2.5 million or greater, inventory fell 31.67 percent, with 41 homes on the market compared with 60 at the close of the fourth quarter a year earlier. Fewer homes sold between $1.5 million and $2.499 million during the quarter – 46 compared with 69 during the fourth quarter 2006 – a 33.33 percent decline. Despite the drop in unit sales, prices held; the sold median price in the recently-ended quarter was $1.852 million, versus $1.675 million during the final quarter of 2006 – a 10.59 percent increase. The most expensive home sold in Contra Costa during the recent quarter was in Alamo, for $3.88 million.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $28,200,000 Units Sold: 9Highest Price: $3,880,000 (Alamo)Period 4Q 2006Total Sold: $20,875,000Units Sold:  7INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 50Listed Median: $1,750.000Units Sold: 46Period 4Q 2006Listed: 130Listed Median: $1,849,000Units Sold: 69San Francisco CountyDespite the lack of inventory for luxury and high-end homes in San Francisco, more homes sold in both categories during the fourth quarter 2007 than in the same period a year earlier. At $2.5 million or greater, 42 homes sold in the recent quarter, versus 31 during the final quarter 2006. From $1.5 million to $2.499 million, 59 homes sold in the recent quarter compared with 56 in the last 90 days of 2006. The most expensive home sold in San Francisco during the recent quarter sold for $16 million. Affluent home shoppers did get some relief during the recent quarter, with 30 homes listed for sale at $2.5 million or greater, compared with 18 at this benchmark level at the close of 2006. And yet in the more affordable range where demand is typically greater – homes priced from $1.5 million to $2.499 million, a paltry 18 homes were listed for sale at the end of the fourth quarter 2007. It’s a similar number to the 16 homes on the market in this price range during the final quarter 2006 – and not nearly enough available product listed for sale, real estate professionals say.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $196,691,665 Units Sold: 42Highest Price: $16,000,000 (San Francisco)Period 4Q 2006Total Sold: $125,053,400Units Sold: 31INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed:  18Listed Median: $1,871,000Units Sold:  59Period 4Q 2006Listed: 16 Listed Median: $1,797,000 Units Sold: 56Santa Cruz CountyIn Santa Cruz County, the median sold price increased in both the high end and luxury-class categories, while sales volume was comparable to a year earlier and inventory spiked approximately 10 percent. For homes sold from $1.5 million to $2.499 million in the fourth quarter 2007, the median sold price went up 7.71 percent to $1.850 million, compared with $1.717 million during the fourth quarter 2006. For homes sold at $2.5 million or greater, the median sold price for homes increased 19.45 percent, moving from $2.75 million during the fourth quarter 2006 to $3.285 million in the recently-ended quarter. The most expensive home traded in Santa Cruz County during the recent quarter was in Capitola, for $5 million. Inventory was comparable at both benchmark levels. At the close of the recent quarter, 57 Santa Cruz County homes were listed for sale at $1.5 million to $2.499 million, versus 52 at the end of the fourth quarter 2006. At the upper end – homes for sale at $2.5 million or greater, 43 homes were on the market at the close of the recent quarter compared with 39 at the end of the fourth quarter 2006. Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $17,085,000 Units Sold: 5 Highest Price: $5,000,000 (Capitola)Period 4Q 2006Total Sold: $12,790,000Units Sold: 4INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 57Listed Median: $1,950,000Units Sold: 9Period 4Q 2006Listed: 52Listed Median: $1,860,000Units Sold: 14Monterey County In Monterey County, inventory of homes for sale listed from $1.5 million to $2.499 million declined 13.04 percent in the fourth quarter 2007, with 140 homes listed for sale compared with 161 homes on the market at this benchmark rate during the same period a year earlier. Conversely, homes offered for sale at $2.5 million or greater increased 7.5 percent on a year-to-year basis, with 172 homes on the market at the end of the recent quarter versus 160 homes for sale priced greater than $2.5 million at the close of 2006. The median sold price fell slightly in the upper end of the market, to $3.347 million compared with $3.700 million for the median sold price during the fourth quarter 2006 – a 9.53 percent decline. The most expensive home sold in Monterey County during the recent quarter was in South Coast, for $12.788 million. South Coast is the neighborhood south of Carmel and on the way toward Big Sur.Luxury SalesDH&E base rate $2.5 million +Period 4Q 2007Total Sold: $83,875,650 Units Sold: 20 Highest Price: $12.788 million (South Coast) Period 4Q 2006Total Sold: $97,255,000Units Sold: 23INVENTORY/High-end SalesDH&E base rate $1.5 million +Period 4Q 2007Listed: 140Listed Median: $1,885,000Units Sold: 28Period 4Q 2006Listed: 161Listed Median: $1,895,000Units Sold: 30About Alain Pinel RealtorsAlain Pinel Realtors is the largest privately owned and independent residential real estate company in California.  Locally owned, the firm had sales volume of $7.2 billion in 2007 and has been consistently ranked in the Top 10 firms in the United States based on total sales volume.  It was founded in 1990 by its current Chairman and CEO Mr. Paul Hulme and is based in Saratoga, Calif.  Alain Pinel Realtors has redefined the business of residential real estate and now has 27 prestigious and luxurious offices serving Santa Clara, San Mateo, San Francisco, Alameda, Contra Costa, Napa, Monterey and Santa Cruz counties. Alain Pinel Realtors served 6,000 clients in 2007 with an average sales price of more than $1.2 million.  Alain Pinel Realtors is a founding member of Luxury Portfolio, an operating unit of The Leading Real Estate Companies of the World (formerly RELO). APR has a joint venture partnership in the mortgage lending institution Private Mortgage Advisors, which is an affiliate of Wells Fargo Bank, N.A. For a complete listing of Alain Pinel Realtors offices, services and agents, please visit our website at apr.com or call 408-741-1111.

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