Rising Prices, Low Inventory Take A Toll On Home Sales – Again In San Francisco
San Francisco, CA (PRWEB) January 31, 2014 -- Rising home prices and a chronic shortage of existing, single-family detached homes in most San Francisco neighborhoods caused home sales to slow on both a quarterly and annualized basis in the fourth quarter of 2013, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.
Citywide, 696 existing, single-family detached homes were sold during the fourth quarter, down slightly from 680 homes sold in the third quarter and down 6 percent from 737 homes sold in the last quarter of 2012. A significant decline in the inventory of detached homes available for purchase played a role in the slowdown. As of December 31, the final day of the fourth quarter, only 197 existing detached homes were listed for sale, down 47 percent from 370 homes on the market on September 30, the final day of the third quarter. A year ago, 232 homes were listed for sale on the final day of the fourth quarter.
With few properties on the market, detached home prices increased on an annualized basis in all but one of San Francisco’s 10 neighborhoods and were unchanged or slightly higher in five neighborhoods on a quarterly basis. Citywide, the median price of a detached home rose 3 percent from $1,163,556 in the third quarter of 2013 to $1,203,930 in the fourth quarter, but was up 12 percent from $1,075,379 in the fourth quarter of 2012.
Median home prices rose on both a quarterly and annualized basis in four neighborhoods. District 9 (Inner Mission/Potrero Hill/South of Market) broke the $1 million barrier with a 44 percent year-over-year median price increase, up from $800,000 a year ago, while more affordable District 3 (Stonestown/Ingleside/Oceanview) recorded a 30 percent year-over-year increase as its median price rose from $630,500 to $820,000. In District 1 (Richmond), the median sales price rose from $1,052,500 in the final quarter a year ago to $1,317,500 in the fourth quarter of 2013, a 25 percent increase. District 5 (Glen Park/Haight Ashbury/Noe Valley) reported a 17 percent year-over-year increase as its median sales price rose from $1,448,000 to $1,700,000. District 7 (Marina/Pacific Heights/Cow Hollow) reported The City’s highest median sales price at $3,800,000, down slightly on a quarterly and annualized basis.
District 2 (Sunset) experienced the greatest number of detached home sales for the quarter with 140, an increase of 16 percent from the fourth quarter of 2012. District 10 (Bayview/Excelsior/Visitacion Valley) followed with 132 homes sold, which was down 19 percent from 163 homes sold a year ago. On a percentage basis, District 9 led the way with a 37 percent annualized increase in the number of homes sold.
Homes continued to sell quickly. Citywide, the average detached home was on the market only 38 days before it attracted a final offer to purchase, down from 39 days in the third quarter and 40 days in the fourth quarter of 2012.
According to Jim Caldwell, Manager of the BHG Mason-McDuffie office in San Francisco on Union Street, “Looking ahead, observers expect more moderate increases of 5-6 percent in the City’s median home price in the coming quarters. Homebuyers may find it easier to negotiate now that there are fewer buyers offering cash, and homeowners in a positive equity position who have been awaiting a signal that home prices have reached a plateau may find that now is an opportune time to put their home on the market.” Homeowners will want to select a REALTOR® with the marketing savvy and experience to aggressively price their home and to attract and negotiate with qualified buyers.
About Better Homes and Gardens Mason-McDuffie Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. The company was named the 26th largest real estate services firm in the nation (REALTrends 500) in 2012, and Number Two in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled more than 5,900 transactions in 2013, generating over $3 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with Highland Partners in Piedmont and Montclair, Leading Edge Properties in Petaluma, Tri-Valley Realty in Pleasanton and Livermore, Ventura Barnett in San Jose, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,200 real estate professionals with 30 offices in eight counties in the Bay Area, wine country and the Tahoe/Truckee region. For more information, go to http://www.bhghome.com
Cathy Harrington, Better Homes and Gardens Mason McDuffie, 925-924-4751, [email protected]
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