San Francisco Real Estate Market Update

Is the Market Correcting?
While we may not have a crystal ball, the past can sometimes offer insight into the future. This is not the first time that we have seen little to no appreciation in San Francisco real estate over a 12 month period. Between 2016-2017, we saw a similar trend. During the 12 months preceding that slow down, the market saw a gain of more than 19%. The slow down was merely the market evening out.Of course, 2019 is different than 2017. For one thing, the new tax laws are disadvantageous for high-value real estate. We are also in year 8 of a historically shorter recovery cycle. The San Francisco economy as a whole is in a unique position where tech, the city’s limited supply of space and housing, and the American economy intersect. Many of the statistics are contradictory, reflecting this complex web of factors.Someone Tell Sellers, it’s Spring
The median sales price (MSP) of single family homes increased by only 0.18% over the last 12 months. The MSP of condos actually decreased 1% over that same time frame. The Case Shiller Historical Price Index reflects this same trend, indicating that the high-tier index has flattened out.Percent of list price received is typically a good indicator of demand; in San Francisco, high demand typically pushes the percentage up. Over the last 12 months, the percent of list price received for single family homes has dropped from 113.4% to 110.9%, so may be less overall demand this year than last. However, pending sales are increasing as buyers emerge from winter, and someone forgot to tell sellers that its spring. Both single family and condo listings are down. As the overall inventory gets eaten up, the dearth of supply should feed prices (though we have not seen any increase in MSP just yet).The Ultra-Luxury Market
Even in San Francisco, there are few sales above $7,000,000. This makes it difficult to set prices or establish reliable trends. On top of that, only around 10.4% of listed properties in this market sell. Looking at a graph of these numbers, prices seem to jump from month to month, and, some months, there are no sales at all. Despite all this uncertainty, sellers of these ultra-luxury properties can rest easy knowing that, over the last 3 years, there has been very little overall variation in MSP.

Summer is here and hopefully days of rain are behind us! With warm weather on the horizon, it is time to get out of town and enjoy Northern California’s beauty. Better yet, enjoy the scenery with a drink in hand. This list of 5 trails with bars at the end will come in handy the next time you’re looking to get some exercise, enjoy the sunshine and grab a drink, all at the time same time! Read More »»

With summer here, the Bay Area is alive with festivities. Being home to some of the best food and drink offerings in the world, the Bay Area has reason to celebrate. Each summer, there are new and returning festivals, events and celebrations for all to enjoy. Visit them all or visit a few, but be sure to checkout this summer’s top food and drink festivals. Pull out your calendar and use this list as your guide! Read More »»