Did you know that the luxury home segment in San Francisco makes up a tenth of the overall home market in the city? That’s by unit sales – and it’s even more if you’re looking at dollar volume.
When I say luxury, I’m typically talking about the older neighborhoods running through the north of the city – Sea Cliff through Pac Heights to Russian and Telegraph Hills. That said, we’re also looking at high-end properties in the greater Noe Valley/Castro/Haight-Ashbury district.
Right now we’re seeing a major influx of high-tech industry buyers with cash burning up their pockets – and this is definitely affecting the market. Paragon research indicates that these wealthy buyers are going to continue to come into the market as the Bay Area sees more and more initial public offerings.
Buyer demand versus inventory of luxury home sales is a big deal these days. Three out of the last four quarters saw the highest percentages since the market peaked in 2007 and 2008. And the homes that are selling are doing so at a rapid clip – and very close to asking price. If you’re talking listings that go through price reductions, though, you’re looking at an average discount of 18 percent off the original list price.
Now let’s talk dollar per square foot values. This is going to vary widely by neighborhood, but you’ll see the highest values when it comes to luxury condos in fancy-schmancy buildings with jaw-dropping views. If you’re seeking specifics, get in touch and I’ll do my best to find out what you need to know.
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 cblase@paragon-re.com. www.ceceblase.com
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