Three Silicon Valley cities have made it to the top five in the list of the top luxury markets in the United States, according to an index compiled by Coldwell Banker Previews International.
While Woodside topped the list, Portola Valley and Hillsborough came in third and fourth respectively. In all, four out of the top five luxury property markets were in California.
Several tech bigwigs like Oracle's Larry Ellison and Apple's Steve Jobs have owned homes in Woodside, reports The Business Insider.
For the index, the folks at Coldwell Banker Previews International gathered data from the Multiple Listing Service (MLS) databases. They analyzed closed and active listings for the period of Jan. 1, 2013, to Dec. 31, 2013. The search was limited, however, to all properties that sold or had a listing price above $1 million.
Interesting trends the report highlights include the influx of Chinese buyers, who are heating up the U.S. luxury property market. An earlier report by the National Association of Realtors revealed that China spent about $8.2 billion in 2012 on American real estate, generating about $492 million in commissions for real estate agents throughout the country. In 2013, the country's investment nearly doubled to $14 billion.
Analysts say that the tech boom has made Silicon Valley one of the most affluent markets in the country.
"Silicon Valley is the center of the technology universe, and buyers are flocking to our market to be a part of it. 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," Scott Dancer, a sales associate with Coldwell Banker Residential Brokerage in Woodside, Calif., said in an official statement.
Experts also asserted that the rich are drawn to waterfront properties and places with views and access to high-end shopping.
With demand high, supply has been drying up quickly.
"With inventory so low, we're also seeing the ultra-wealthy flock to other surrounding suburbs in the region, including Portola Valley, Hillsborough and Atherton depending on their lifestyle needs," Dancer said.
Bidding for these properties has become fierce. Potential homes sell on average within three days. Prices have also inflated in the area's cities. According to CNBC, the cheapest home in Woodside is a two-bedroom, one-bathroom home priced at $949,000.
"I think the best way to think of the Bay Area currently is something like a modern day gold rush boomtown. House prices are being supported by people who join a successful tech startup and then are able to cash out with substantial stock options. If you don't strike it rich this way, there's no way to buy a decent house in a decent area on a middle class income," Stuart Staniford, an employee who works for a Silicon Valley firm, wrote on his blog.
Below is the list of the top 10 luxury markets:
1. Woodside, Calif.
2. Bal Harbour, Fla.
3. Portola Valley, Calif.
4. Hillsborough, Calif.
5. Thousand Oaks, Calif.
6. Glenbrook, Nev.
7. Arcadia, Calif.
8. Southport, Conn.
9. Incline Village, Nev.
10. Atherton, Calif.
Find the complete list here.
