According to a recent report from Redfin real estate agents, San Diego ranked fifth in the U.S. for the number of sales of million-dollar luxury homes in the third quarter.
For the quarter, there were 293 residential sales in the county above $1 million, with the average sales price just below $1.5 million.
San Francisco, Los Angeles, San Jose, and Chicago were the four cities just ahead of San Diego with $1 million-plus sales. These sales increased 9 percent from the same time last year.
Redfin also reported that, “Sales of homes for $1 million and more continued to solidly outpace the rest of the housing market in the third quarter.” They further reinforced that the luxury market has been going strong, benefitting from low interest rates, overseas investment and a booming stock market.
Redfin said purchases from foreign investors have started to wane, and markets that are most dependent on international demand such as Los Angeles, Orange County, and Miami and Orlando in Florida are seeing a steady and dramatic decline in sales of $1 million-plus houses.
There’s also a drop-off in the number of all-cash buyers, Redfin said. About half of all the transactions in the seven markets with heavy international investor interest were in cash at the start of the year, but fell to 22 percent by the third quarter, according to the Seattle-based real estate brokerage and data provider.
With results like these, it is clear that San Diego is experiencing a positive period in the luxury housing market.
President of First Republic Katherine August-deWilde commented, saying, “Price increases continue to be driven by low interest rates, limited inventory and a good economy. Luxury properties are routinely selling for over the asking price and often with multiple offers.”
“Prices continue to trend upward but most importantly they continue upward at a sustainable rate,” said Mark Goldman, a loan officer and real estate lecturer at San Diego State University. “We all want our houses to double in value, the problem with that is you end up with a market that’s going to collapse on its own weight.”
We’ll take it from the experts and also hope for San Diego’s continued success in luxury real estate.