By Salma Awwad
San Francisco is leading the way with 2,485 homes sold in the last year
San Francisco is leading the way when it comes to luxury home priced over $1 million, according to new figures released this week.
With the highest number of homes sold, The City by the Bay experienced an increase of 57 percent in demand from last year, in the 12-month period from July 1, 2013 through June 30, 2014, according to Coldwell Banker Previews International's new Luxury Market Report.
But most surprising is the surge in demand for the quiet and quaint city of San Jose. Making its debut in the top five US luxury markets for homes valued at $1 million+ with an increase of 76 percent in high-end home sales from this time last year.
Moving up to the big leagues of $10 million+ properties, the Big Apple still stands tall as the luxury real estate epicentre, followed by a strong showing from both Beverly Hills and Miami.
The number of sales for four out of five of these top cities is up by at least 36 percent and the US luxury home market is showing no signs of slowing down.
According to the companion survey of wealthy US consumers with a net worth of at least $5 million (penta-millionaires) conducted by the Coldwell Banker Previews International program and the Luxury Institute, nearly half (48 percent) of all wealthy consumers indicated that they plan to purchase a luxury home within the next 12 months.
Most interestingly is that the power shift has moved to a younger demographic with a staggering 81 percent of affluent individuals under 35-year-old planning to buy a luxury home in the next year.
This group's reported average purchase price is $7.8 million, as opposed to the average of $2.7 million and $1 million of wealthy buyers ages 45-64 and 65+ respectively.
Women reported buying more expensive homes than men: 22 percent of women spent $10 million or more for their most recent property versus 13 percent of men in the same wealth bracket and 70 percent reported paying all-cash for their most recent property versus 57 percent of men.
(For more information on the LA market: www.investinlosangeles.biz).