Market forces are changing the shape of luxury locations, expanding borders to enlarge the supply of million dollar plus homes just outside of historically affluent neighborhoods. Unlike homes at the other end of the price scale where inventory shortages fueled double digit price increases, the new growth is a result of the reviving economy
Coldwell Banker Previews International® released its first Luxury Market Index, which analyzed U.S. cities with at least 25 home sales of $1 million and higher in 2013 and ranked the best performing markets by a number of factors including annualized sales in units, volume, average and median sale price.
Topping the list was Woodside, Calif., home to venture capitalists and international entrepreneurs, was the top performing luxury market for 2013 based on critical metrics including annualized sales in units, volume and average and median sale price. Two other hot Silicon Valley communities, Portola Valley and Hillsborough, Calif., ranked in the top five, with all based less than 30 minutes from the Northern California corporate headquarters of Apple, Facebook and Google.
Inventory is very tight in markets like Woodside, a reserved community with many homes hidden down long tree-lined driveways and private lanes, where 24 of Forbes’ richest people in America own property. Much of Woodside is owned by Stanford University, which is selling any land. With inventory low, the ultra-wealthy are flocking to other surrounding suburbs in the region, including Portola Valley, Hillsborough and Atherton depending on their lifestyle needs.
But unlike lower tiered markets, inventory is not the real powerhouse behind today’s Silicon Valleyu boom. Rather, the exploding tech economy, which is creating immense wealth on a daily basis when start-ups get bought out and new venture flourish.
http://www.realestateeconomywatch.com/2014/04/luxury-digs-stake-out-new-turf/
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