The San Francisco Examiner this weekend presented a sobering scene for buyers in the local market: a two-bedroom bungalow in need of a significant amount of TLC garnered 50 visitors in the first week alone – and is expected to fetch far more than the asking price of $550,000.
“Why?” the article asks. “Because potential homeowners in San Francisco are not waiting around.”
According to real estate agent Ruth Krishnan, who is handling the bungalow’s sale, buyers are feeling as though they must act now or pay the price later. The article cites a market report by Paragon that found that low supply, plenty of cash, high demand and cheap credit were all factors in last year’s price jump.
In the recovery from the recession, the city has now exceeded expectations of prices. According to the Paragon report, 2013’s median price of $915,000 more than doubled the state median and passed the previous peak of $895,000 that was set before 2007’s housing collapse.
The Examiner quoted the Paragon report as saying: “The affluent have benefited from the surge in financial markets, which makes them feel more affluent. … Our local high-tech boom has minted a large number of newly wealthy homebuyers.”
Sales of condos and tenancies-in-common were most frequently seen in the northeastern part of the city, while the southeastern part saw the most home sales. The former category saw about 1,000 sales, while the latter saw about 500 sales.
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