Paragon has just issued its mid-year market report, titled “Prices, Cycles and Trends in SF Real Estate: Of Seasons, Factors, Prices, Cycles and Trends in San Francisco Real Estate.” The report, which covers the first six months of 2014 and spring in particular, takes a look at what we’re considering perhaps the most frenzied market since the Gold Rush this past spring, in addition to other factors that make our crazy, wonderful market tick.
First off, why has spring seen such ferocious markets these past few years? Well, buyers have been plunging aggressively back into the market much earlier in the year and in much greater numbers than sellers. This creates a fierce high-demand/low-supply dynamic that in turn fosters competitive bidding. While this spring saws significant jumps in home values, keep in mind that median sales prices are also affected by factors such as seasonality, inventory available for purchase and interest rates.
The large majority of San Francisco home sales in spring went quickly, without price reductions and over asking price. We’ve studied, neighborhood by neighborhood, the average percentage over list price for which these homes sold – and historically speaking, these percentages are astounding. Notably, the South Beach-Yerba Buena-Mission Bay district had by far the most listings and sales in the city, and relative abundance of inventory affects this particular statistic.
The highest volume of San Francisco luxury home sales in history occurred this spring. In addition, several standard statistical measures of market strength have hit historically low points in the past few months. This means extremely high demand paired with extremely low supply, which is a major driver of rising prices.
See the report for more.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com