Wealthy buyers, driven by the boom in AI and technology stocks, are playing a significant role in the San Francisco Bay Area housing market. Sales of luxury homes, particularly those priced above $5 million, are outpacing the broader market, marking a notable recovery to pre-pandemic levels.
According to a report from Compass, the first half of the year saw $39.5 billion spent across 11 counties in the San Francisco Bay Area. This represents a 15% increase from the same period last year and a $2 billion increase from 2019, though it does not account for inflation or rising housing prices. Despite this growth, the sales volume remains below the peak pandemic period of 2021 and 2022, when sales reached $55 billion in the first six months.
High-value luxury home sales are increasing faster than the broader market. In the second quarter alone, San Francisco saw a 9% year-over-year increase in the broader market, while homes priced at $3 million and above saw a 29% increase, and those priced at $5 million or above surged by 54%.
The San Francisco Bay Area luxury real estate market is experiencing a resurgence, driven by high-value home sales and the thriving tech industry. With significant growth in luxury home sales and record-breaking prices, the market is showing strong signs of recovery and robust activity.
Source: mansionglobal.com
