There were 2887 homes sold in Silicon Valley in 2012 with sales prices of $1 million or more. The sales occurred in nearly every market around Silicon Valley. It wasn't just a high-end that was selling well in 2012, it was every end in 2012. Obviously some markets were more inclined to having sales over million dollars that others but even markets typically considered modest still turned an excellent numbers.
Here are some examples specific communities that had substantial sales of homes priced $1 million or more:
Los Altos - 366
Palo Alto - 477
Sunnyvale - 175
Cupertino - 258
Saratoga - 325
Los Gatos - 275
Mountain View - 201
San Jose - 551
An interesting article the Wall Street Journal written just a few days ago show statistics for the entire country including growth in million dollar home sales. While Silicon Valley is definitely strong is not the only market around the country to see such increases. What is rather interesting is another article written in Gawker points out that there's actually only a one year supply of homes valued at million dollars or more and that if there is a small surge anywhere in the economy it's very likely that demand far outstrip supply prices could rise even more.
As prices continue to increase and sales of these expensive homes rise one question will come up "What about affordability?" As more more sales exceed the million-dollar threshold, the level affordability throughout Silicon Valley will decline. The income required to purchase a home priced million dollars more is well beyond what many workers earn. At some point in the next year will probably see discussions about wage increases along with improved employment numbers.
Comparing these statistics to those from an article I wrote back in 2010, the markets have definitely come a long way. Sales of $1 million homes in Los Altos are up nearly 50% from 2 years ago.
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Bryan Robertson, CEO | T: 650.799.9951 | Email: email@example.com | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc | 171 Main St #220 | Los Altos, CA 94022