Bay Area Luxury Homes Sell Best in the Spring

It looks like we’re in for another weekend of wet weather, and if you ask me, the rain has put something of a damper on our spring real estate market.

But make no mistake about it: the spring market is the most active one of the year, with the highest number of sales each month – and typically at higher price points than every other time of year.

But why are prices higher in spring? The classic answer is that it has to do with the law of supply and demand: buyers come into the market faster than inventory does, leading to an imbalance of supply vs. demand, boosting prices – until inventory catches up and creates an environment where there’s enough supply to meet demand, and then some….which causes prices to moderate in late spring into early summer.

It turns out though that there may be a little more to it than that. It also has to do with the fact that spring is the biggest luxury home market of the year – at least in the Bay Area. Check out the chart below:

Spring Luxury Sales in the Bay Area

This chart shows the number of $2+ million homes sold in the Bay Area, as a percentage of total sales, between January 2018 and January of 2024.

It’s clear to see that the spring months generally have the highest percentage of these more-expensive sales than at other times of the year. It is not universally true – for example, in 2023, the percentage of these homes were higher in July and September than in March (but lower than in April and May).

The fact that these more-expensive homes do tend to be sold more often in the spring than at other times of the year is important for buyers, and sellers, to be aware of.

If there’s one thing that brings out buyers, it’s homes to buy. When buyers feel there is nothing out there for them, they don’t spend much time looking in earnest. Having your home on the market when other homes in its class are also on the market is beneficial in that regard, because available inventory will attract buyers into the market.

On the other hand, having too much competition (in other words, an over-supply) of homes in these luxury price ranges will be a detriment to sellers, and a boon for buyers.

If there’s anything we can infer from that, it’s that it is better to get your home – especially a luxury-class home – on the market earlier in the spring, rather than later. If you hit the sweet spot, you’ll have your home on the market when there isn’t yet a glut of competition but luxury buyers are out in force, looking for the perfect home to move in to ahead of summer.

If the time is right, and you’re ready to make the move and get your luxury home sold for an eye-watering price, please do contact me. I’ll help you make your next move the best one yet.

Silicon Valley Luxury Homes for Sale