Luxury home prices rise in San Jose, fall in San Francisco, Los Angeles
By Ron Trujillo / firstname.lastname@example.org
California’s luxury housing market has become a tale of two cities, separated by about 50 miles – and $2.7 million.
San Jose’s average luxury home price climbed to $2.36 million during the fourth quarter, a 22.8% increase compared to a year ago, according to Redfin. San Jose was the 10th-best performing luxury market in the nation, nowhere near Sarasota’s (Fla.) 45.8% increase.
But San Francisco – about 50 miles north of San Jose — was the biggest loser in the luxury market nationwide during the fourth quarter. The City by the Bay’s average luxury home price dropped 12% to $5.03 million.
Long Beach and Los Angeles also made the loser list, with their average luxury home prices falling 5.6% and 1.2%, respectively.
Despite the decline of luxury home prices in Long Beach and Los Angeles, the region had four of the five priciest sales in the nation during the fourth quarter. A Bel Air estate was the most expensive fourth-quarter transaction at $41 million.
Redfin defines the luxury market as the top 5% most expensive homes sold in each market.
Feature photo by EQRoy/Shutterstock. Photo of Santa Monica house by Divanov/Shutterstock.
Foreclosures fall, again
Foreclosures are so 2008. Today, few homeowners are dealing with foreclosures and the possibility of losing their homes.
California’s scheduled foreclosure auctions declined to 21,163 in 2017, a 39% drop compared to a year ago, according to ATTOM Data Solutions.
A much-improved housing market has made foreclosures less likely for financially strapped homeowners behind on their mortgage payments. Many homeowners, especially in the Bay Area and Southern California, have enjoyed a hefty increase in price – and equity – allowing them to sell their homes if trouble arises.
It’s a dramatic turnaround from the housing collapse, when more than 1.1 million Californians lost their homes to foreclosure between 2006 and 2016, according to CoreLogic. In fact, the state had about 193,000 foreclosures in October 2009 – nine times the foreclosures in all of 2017.
Photo by Andy Dean/Flickr