Tract homes closing escrow at over $1 million — on the resale market as well as new subdivision sales — are continuing to grow, although it is a trickle.

The latest is on Rywood in southwest Manteca where the bulk of the 978 new home starts have occurred in the fiscal year that ended June 30.

The home with six bedrooms and four bathrooms in a 3,732 square-foot floorplan on a 6,866 square-foot lot has sold for $1,019,957.

That doesn’t sound a lot when compared to places like River Islands at Lathrop and Mountain House where transactions for what are essentially tract homes are pushing $1.3 million on a regular basis.

But it is clear $1 million sales are here to stay especially given the number of new homes selling in the low to mid $900,000 range in Manteca.

Resales — besides the three so far in the past 14 months within the city limits — are becoming more common at price points above $900,000.

Sales data for Manteca includes the gated community of Oakwood Shores just outside the city limits on the southern end of Woodward Avenue.

Homes there have been selling on the resale market for the past three years with some selling close to $1.2 million.

Nationally, 8.5 percent of all homes have an estimated value of $1 million or more.

Ground zero in terms of the market with the most $1 million plus homes is San Francisco.

Data shows 80.6 percent of all homes in the city are worth more than $1 million.

Other cities in the Bay Area aren’t that far behind.

California, as a whole, not only has the largest share of $1 million plus homes but is  adding them faster than any other state.

Anaheim, as an example, had 51 percent of its housing stock valued at over $1 million in June 2023. That percentage jumped to 58.8 percent in June of this year.

“Years ago, if you owned a $1 million home, you would have been considered very rich,” noted Redfin economist Chen Zhao as quoted in the Wall Street Journal. “Now, that’s the entry point for some markets.”

The growth of $1 million homes and households with the income to buy them in the Bay Area helps explain the steady demand in Manteca that has led to 978 single family home permits being issued in 12 months.

For $1,025,999 you can buy a home on a 6,970 square-foot lot built in 1923 with four bedrooms and two bathrooms with 1,172 square feet of living space in San Jose.

Or you can spend $6,000 less and get 3½ more times the living space on basically the same sized lot for a home just built on Rywood in southwest Manteca.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com