San Francisco, CA (PRWEB) October 12, 2017
The San Francisco market is unusual and, therefore, fascinating. During any three-month period, the median sales price (MSP) of single-family homes can fluctuate by several hundred thousand dollars. Case in point—from May to Aug. 31, 2017, the MSP of single-family homes dropped $95,000. Despite that dramatic decrease, the MSP trendline from Aug. 2014 to Aug. 2017 is up 42.56 percent. In all likelihood, the MSP will trend up again in September.
This continuing upward trend over time demonstrates that San Francisco is still a destination for buyers, and demand for single-family homes remains strong. Since February, the percent of list price received has hovered between 112.9 and 117 percent. Properties are still selling for more than the asking price. In addition, the number of new sales exceeded the number of new listings in August—all signs that San Francisco real estate is still on the incline.
San Francisco condominiums tell a slightly different story. For one thing, the monthly variation in median sales price tends to be smaller than that of single-family homes. Since Aug. 2014, the trend in median sales price is up, but the condo appreciation of 27.15 percent is much less than that of single-family homes. The percent of list price received is another area in which condos are distinct from their single-family counterparts. Since Aug. 2015, this number has dropped by 52.17 percent to 103.3 percent.
The inventory of condos is diminishing at a similar rate to that of single-family homes. Each month since May 2017, there has been a decrease. The number of pending sales has mirrored that decline. This may have to do with the fact that San Francisco has some ongoing condo development and little to no development of new single-family homes.
These numbers indicate the same story that this market has been telling for the past several years: declining inventory and consistent demand. San Francisco’s strong economy continues to attract buyers, and, while there is new condo development, there are very few new single-family homes. This means that all these new buyers are competing for the same stock of homes.
About the company:
Tim Gullicksen has been a top-producing real estate agent since he first entered into the business and takes great pride in managing every aspect of each transaction. After graduating from high school in the South Bay, Tim earned a bachelor’s degree in political science and history from the University of California-Berkeley. He went on to earn his teaching credentials from JFK University in Orinda and taught kindergarten in the San Jose Unified School District. He brings an educational approach to real estate developed from that background and sees himself as a facilitator of property transactions. For more information, visit his website at http://www.gullicksengroup.com/.