by Rick Delgado
on Thursday, February 11th, 2016 at 9:47am.
Further evidence of Sacramento's red-hot real estate market comes from a new report showing luxury homes in Sacramento have been selling well and becoming even pricier for affluent home buyers.
According to brokerage firm Redfin, Sacramento's high-end housing prices increased by 12.6% last year, making the city's luxury market the third hottest in the United States, behind only Philadelphia and Austin, Tex., where values were up more than 20%.
Redfin defines luxury homes as those being in the top 5% of all homes for sale. Redfin’s report tracks all homes sold in at least the 95th percentile in more than 600 places. Cities must have had 100 luxury sales to qualify as big winners or losers.
The reason for Sacramento's surge in luxury property prices (and demand) is buyers running from dismally low inventory and high prices in San Francisco and Silicon Valley.
The average selling price of a luxury home in Sacramento was $830,000, which is one of the most lowest priced of all the luxury markets. By comparison Philadelphia's luxury homes were selling for $1.07 million, and luxury real estate in Austin was priced even higher at $1.8 million.
While Sacramento, Philadelphia and Austin were doing well, the biggest losers in the luxury market were Baltimore (-17.9%), Tampa (-14.7%), and Chicago (-5.8%).
Among some of the finer luxury homes in Sacramento is this gorgeous Mediterranean villa (at right) with its own tennis court, cabana and waterfalls. This stunning home also features color washed walls, Grecian columns, pillowed limestone floors, fabulous baths & a fantastic Gourmet Kitchen - all finished with an artisan flair remaining true to the Mediterranean styling. Situated on 1.06 acres of manicured grounds, this home is listed on the market for $4.2 million. Check the full listing here.