Low Inventory Nudges Condominium Home Prices Higher in San Francisco according to Latest MLS Data from Better Homes and Gardens Mason-McDuffie

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Steady Supply of New Developments May Boost Interest in Condominiums According to New Study

Steady demand and a shortage of available properties on the market once again nudged the median price of a condominium home sold in the City of San Francisco slightly higher 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, the median condominium home price climbed 13 percent from $784,793 in last year’s fourth quarter to $890,616 in the final quarter of 2013 but was up only .1 percent from $884,695 in the third quarter.

At the neighborhood level, five of 10 San Francisco communities reported an increase in their median sales price on both a quarterly and annualized basis. The median price of a condominium sold in District 10 (Bayview/Excelsior/Visitacion Valley) jumped 47 percent on a quarterly basis and 43 percent year over year, followed by District 3 (Stonestown/Ingleside/Oceanview), up 7 percent for the quarter and 41 percent for the year, respectively; District 5 (Glen Park/Haight Ashbury/Noe Valley), up 6 percent and 30 percent; District 9 (Inner Mission/Potrero Hill/South of Market), up 6 percent and 9 percent; and District 8 (Nob Hill/Russian Hill/Telegraph Hill), up 4 percent on both a quarterly and annualized basis. While its median price was down slightly on a quarterly basis, District 7 (Marina/Pacific Heights/Cow Hollow) reported The City’s highest median sales price – $1,200,000 – which was up 24 percent from the last quarter of 2013, when it was $965,000.

The City’s chronic shortage of inventory was behind a slight quarterly decline and modest year-over-year increase in condominium home sales. As of the final day of the fourth quarter of 2013, only 171 existing condominium homes were listed for sale, down 19 percent from 211 on the final day of the third quarter and down 57 percent from 357 condominiums on the market on the final day of 2012’s fourth quarter.

Citywide, 677 existing condominium homes changed hands in the fourth quarter, down 2 percent from 690 homes sold in the third quarter but up 8 percent from 625 sold during the fourth quarter of 2012. District 9 set the pace with 221 condominium homes sold in the fourth quarter, down from 231 in the third quarter and 194 in the fourth quarter of 2012. District 8 followed with 119 condominium homes sold, up from 106 in both the previous quarter and comparable year-ago periods. Sales results from other San Francisco neighborhoods were mixed, with approximately half reporting quarterly declines in condominium sales but the majority showing improvement from the previous year’s fourth quarter.

Homebuyers moved quickly to purchase competitively priced properties. On average, a condominium home was on the market only 34 days from the date it was listed to the date it received a final purchase contract, up slightly from 31 days in the third quarter but well below the 47 days the average home was on the market during the final quarter of 2012. Districts 2 (Sunset) and 6 (Hayes Valley/Alamo Square/Western Addition) reported an average of only 23 days on the market before a final offer, while District 10 reported a high of 48 days.

According to Jim Caldwell, Manager of the San Francisco BHG Mason-McDuffie office on Union Street, “Looking ahead, rising rents and the addition of new condominium developments around The City may boost buyer interest in the purchase of a condominium home during 2014.” Condominium-home owners considering a sale may want to list their home sooner rather than later, when they could face additional competition in the form of new units coming onto the market. Setting a competitive listing price will continue to be key. Both homebuyers and sellers will benefit from working with a REALTOR® with the experience and street-by-street knowledge required to evaluate homebuying and selling opportunities in a fast-changing marketplace.

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.

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Cathy Harrington
Better Homes and Gardens Mason McDuffie
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