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Recently released report by the Mark Company indicates that new condo prices grew +1% compared to April 2017 and are now equal to $1,175 per square foot.  Inventory dropped -44% compared to the same time last year. 

As for condominium resales, their prices increased +5% y-o-y, equaling to $1,095 per square foot.

For more details, please download the enclosed copy of the report. 

*The Mark Company Condominium Pricing Index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000 SF condominium. 

With best wishes,

KATE BATZOGLOU (STANTON)

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com  

c: +1 (415) 601-0926 

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.

April 2018 housing stats report was recently released by SF Association of Realtors.  It shows the following local real estate trends: 

  •         Median Sales Price (“MSP”) of single family homes reached $1.65M, an impressive +20% increase compared to April 2017.  MSP for Condo/TIC/Coop properties was equal to $1.25M, a +12% increase v. the same time last year
  • 78% of single family homes sold above their list price and those that fell into this category received 120% of their asking price.  As a way of comparison, 69% of Condo/TIC/Coop properties sold above their asking price, receiving 106% of their list price.  

Of note from the Report: 

  1. We are finally beginning to see some upward movement in new listings – there may not be massive increases in inventory from week to week, but a longer-term trend
  2. Currently low inventory should continue to create a competitive situation for buyers, causing price increases over the next few months
  3. Being aware of pending mortgage rate increases is once again in fashion

For more details, please download the enclosed copy of the report.   

With best wishes,

KATE BATZOGLOU (STANTON)

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: +1 (415) 601-0926 

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.

The San Francisco Condominium Pricing Index* increased +4.5% to $1,168 per square foot in March 2018 from the month before, the Mark Company reports.  This is a -5% drop from a year ago, when it last peaked at $1,232. 

On the other hand, the average price for resale condominiums soared to $1.419m in March – the highest recorded in at least 5 years.  The average price per square foot rose to $1,137, +9% above last year’s levels.

For more details, please download the enclosed copy of the report. 

*The Mark Company Condominium Pricing Index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000 SF condominium. 

With best wishes,

KATE BATZOGLOU (STANTON)

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com  

c: +1 (415) 601-0926 

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.

March 2018 housing stats report was just released by SF Association of Realtors.  It shows the following local real estate trends: 

·         Median Sales Price (“MSP”) of single family homes reached a high of $1.687M, a remarkable +25% increase compared to March 2017.  MSP for Condo/TIC/Coop properties was $1.25M, a +10% increase v. the same time last year – notably, prices for these property types have been volatile as last month they exhibited -6.8% drop (to $1.104M) v. February 2017

·     80% of single family homes sold above their list price and those that fell into this category received 118% of their asking price.  As a way of comparison, 58% of Condo/TIC/Coop properties sold above their asking price, receiving 107% of their list price.  

Of note from the Report: 

1.  Housing is proving its resiliency in an increasingly improving economy

2.  The Federal Reserve have risen its key short-term interest rate by .25% for the sixth time since December 2015 and at least two more rate increases are expected this year

3.  Borrowing money will be more expensive, particularly for home equity loans, credit cards and adjustable rate mortgages, but rising wages and a low unemployment rate would seem to indicate that we are prepared for this

4. Although mortgage rates have risen to their highest point in 4 years, they still remain historically low

For more details, please download the enclosed copy of the report.   

With best wishes,

KATE BATZOGLOU (STANTON)

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: +1 (415) 601-0926 

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.

In December 2017 and January 2018 the Mark Company Condominium Pricing Index* increased for the first time compared to the previous 2 years (+2% and +6%, respectively, on y-o-y basis). 

Recently released report by the Mark Company indicates that this upward trend did not continue in February 2018.  New condo prices dropped -1% compared to February 2017 and -8% compared to January 2018 & are now equal to $1,118 per square foot.  This drop may be of even larger significance in view of -44% decrease in inventory compared to the same time last year. 

As for condominium resales, their prices also dropped -1% y-o-y and -5% v. January 2018, equaling to $1,036 per square foot.

For more details, please download the enclosed copy of the report. 

*The Mark Company Condominium Pricing Index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000 SF condominium. 

With best wishes,

KATE BATZOGLOU (STANTON)

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com  

c: +1 (415) 601-0926 

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.

February 2018 housing stats report was just released by SF Association of Realtors.  It shows the following local real estate trends: 

·   Median Sales Price (“MSP”) of single family homes reached a new historic high of $1.715M, a remarkable +33% increase compared to February 2017.  On the other hand, MSP for Condo/TIC/Coop properties was $1.104M, a -6.8% drop v. the same time last year. 

·   80% of single family homes sold above their list price and those that fell into this category received 116% of their asking price.  As a way of comparison, 59% of Condo/TIC/Coop properties sold above their asking price, receiving 105% of their list price.  

Of note from the report:  “…The three most prominent national market trends for residential real estate are the ongoing lack of abundant inventory, the steadily upward movement of home prices and year-over-year declines in home sales. … In February, prevailing mortgage rates continued to rise [reaching its highest level since January 2014].  This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. … Upward rate pressure is likely to continue as long as the economy fares well.”

For more details, please download the enclosed copy of the report.   

With best wishes,

KATE STANTON

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: +1 (415) 601-0926 

 

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.

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,

KATE BATZOGLOU

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: 415.601.0926 

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.

 

UBS' Global Real Estate Bubble Index* report for 2017 doesn't view San Francisco as being exposed to a "bubble risk" - instead, it is characterized as "overvalued", the most overvalued in U.S.A., to be exact.

While U.S. housing prices remain below their 2008 peak in real terms, San Francisco's housing prices increased by a remarkable +65% since 2011.  Per UBS, the city shows signs of overvaluation but no bubble risk, given its strong economic fundamentals amid the astonishing boom of tech companies.

Los Angeles is in overvalued territory, too, as prices climbed twice as fast as the national average since 2012.  Meanwhile, real price growth in Boston has remained close to the national average of 15% in the last four years, while New York and Chicago, oriented toward the financial sector and more traditional industries, have been outpaced by the overall U.S. market.  Overall, New York and Boston seem fairly valued while Chicago undervalued, UBS says.

Globally, bubble risk seems greatest in Toronto, where it has increased significantly in the last year. Stockholm, Munich, Vancouver, Sydney, London and Hong Kong all remain in risk territory, with Amsterdam joining this group after being overvalued last year.

For further details, please download a copy of the enclosed report.

*UBS:  the term “bubble” refers to a substantial and sustained mispricing of an asset, the exis­tence of which cannot be proved unless it bursts. Typical signs include a decou­pling of prices from local incomes and rents, and distortions of the real econ­omy, such as excessive lending and con­struction activity. The UBS Global Real Estate Bubble Index gauges the risk of a property bubble on the basis of such patterns.  Vastly overvalued housing markets, as measured by the UBS Global Real Estate Bubble Index, have historically been associated with a significantly heightened probability of correction and greater downside than housing markets whose prices developed more in line with the local economy.

With best wishes,

KATE STANTON

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: +1 (415) 601-0926 

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

In December 2017 the San Francisco Condominium Pricing Index increased 2% v. December 2016 - this was the first uptick in 2017 - the year which generally saw an overall price decline compared to the previous 2 years.  This upward trend continued in January 2018 and Index is now up +6% or $1,219/sq.ft. on a y-o-y basis, however, this is still 9% lower below the peak pricing of August 2015. 

Such situation reflects a strengthening market going into Spring and continued decline in new construction supply.   New construction may be seeing a bump in offers due in part to buyer fatigue with multiple offers in resales market and homes selling over asking price.    

For more details, please download the enclosed copy of the report. 

*The Mark Company Condominium Pricing Index uses a proprietary quantitative method to model the price per square foot of a new 10th floor, 1,000 SF condominium. 

With best wishes,

KATE STANTON

Associate Broker, Pricing Strategy Advisor (PSA®)

CalBRE No:  01445813

This email address is being protected from spambots. You need JavaScript enabled to view it.

www.sfbykate.com 

c: +1 (415) 601-0926 

 

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.

Recently came across this good analysis and projections on the future of San Francisco's housing market, highly recommend.  Download the enclosed report and find out how Bay Area economy, startups & IPOs, financial markets, interest rates, high state income taxes & new federal tax law, housing appreciation & affordability, migration trends, new construction boom, infrastructure challenges, inventory shortages, international and ecological factors as well as general local conditions may affect Bay Area real estate markets. 

About Kate

As a long-term resident of San Francisco, Kate is well familiar with the city’s past and present. With her professional background and deep knowledge of the local housing market, Kate is in the position to best assist with your real estate needs. Should you be looking for a recommendation on the upcoming cultural or social events and/or if you need a trusted local real estate advisor, ask Kate – San Francisco is her HOME.

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Contact Kate

Address: 1801 Lombard Street, San Francisco, CA 94123

Mobile: +1.415.601.0926

Email: ekaterina.stanton@gmail.com

Associate Broker

CalBRE No:  01445813

 

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