San Francisco Association of Realtors recently released its Annual Report for 2017, which shows the following housing market trends:
1. 2017 median sales price (“MSP”) for single family properties reached $1.418m, which is +7% higher v. 2016. MSP for Condo/TIC/Coop properties was equal to $1.15m, a +6% increase compared to 2016;
2. On average, single family homes received 115% of their list price and Condo/TIC/Coop properties – 105%, spending 27 and 37 days on market, respectively;
3. Most of the housing sales occurred in $1.098m+ segment, properties with 4+ bedrooms received the most upside on their sale price v. list price (+12% above asking).
4. In terms of property size v. list price, there was the following dynamic - properties 999 sq.ft. or less sold +5.3% above asking, 1,000-1,999 sq.ft.: +11.2%; 2,000-2,999 sq.ft.: +10%, and 3,000 sq.ft.+ listings sold at asking;
5. Undoubtedly, market trends differ depending on San Francisco Realtor District (there are 10) and the neighborhoods within them. While District 3 (Southwest, which includes Ingleside, Ingleside Heights, Lake Share, Lakeside, Merced Heights, Oceanview, Pine Lake Park & Stonestown) exhibited the highest appreciation in SF (+17% v. 2016), District 7 (North: Cow Hollow, Marina Pacific & Presidio Heights) properties actually lost -0.3% v. the same time period. To view housing market trends per each of the 10 Realtor Districts, please refer to pp. 9-10 of the Report.
A few points worth mentioning:
Previous annual report (for 2016) showed similar continued appreciation of single family homes (+6% v. 2015) but an almost -1% drop in prices of Condo/TIC/Coop properties (their 2016 median price was $1.085m v. $1.095m in 2015). Apparently, 2017 was comparable in terms of appreciation trends for single family properties but exhibited a new appreciation trend for Condo/TIC/Coop properties, which increased in value, percentage-wise, on par with houses. Further, while these 2017 appreciation trends continued their upward trajectory, the pace of appreciation for both property types slowed down compared to 2015 when there was a +16.5% gain on year-over-year basis.
Here are some noteworthy quotes from the Report: “…More sellers should feel ready to list in 2018. Economic indicators such as unemployment rates and consumer confidence are in an improved state, and sellers currently hold the keys in the buyer-seller relationship. This does not mean that sellers can set their price and watch the offers roll in. On the contrary, buyers will be poised to test prevailing price points, particularly in markets where home price increases are outpacing wage growth and in light of the fact that mortgage rates are expected to increase further in 2018. … The historic tax reforms due to make their mark in 2018 will have varying effects across the nation. High-priced coastal markets may feel the changes stronger than the middle of the country. And some potential buyers may see the changes as providing less of an investment benefit for homeowners…”
For further details, please download a copy of the enclosed Annual Report. Should you have any questions regarding local real estate market, please don’t hesitate to contact me.
With best wishes,
Associate Broker, Pricing Strategy Advisor (PSA®)
CalBRE No: 01445813
Disclaimer: Information provided herein was derived from public sources deemed reliable, it is intended for information purposes only, may contain errors and is subject to revision.