San Francisco Real Estate Market October 2017

Affordability
That word rings in the ears of anyone purchasing a home in San Francisco. The affordability index measures the percentage of families who can afford a median-priced, single-family home in San Francisco. Of the 6 Bay Area counties, San Francisco’s index of 12% is the lowest. Shockingly, with 20% down a buyer needs an income of $290,630 to qualify for the loan.

Appreciation
Despite the already low affordability index, appreciation continues. Median Sales Price (MSP) of single-family homes is up 7.03% since quarter 3 of 2016. Increasing demand puts pressure on dwindling supply: new listings of single-family homes have dropped 22.42% since quarter 3 of 2012. These listings are on the market for 14 days; they sell for an average of 115.4% of list price, near the city’s all-time high.

What About Condos?
Condominiums tell a similar story with more subdued language. The rise in MSP is higher than that of single-family homes—up 11.37% since quarter 3 of 2016. However, the demand is less frantic. Condos are on the market for 22 days, and the percent of list price received hovers at 102.55%. The new condominium projects going up around the city, which are not part of the SFAR database, affect these numbers.

The Importance of the Listing Price
* With 1 or more price change over the course of a listing, the Days on Market can increase by 2-3 times.
* If a property is not properly priced out of the gate, it can reduce the seller’s gain by 10% or more.

 
 
 

  David Ames 

  Top Producer 

 

  DavidAmes@zephyrsf.com

  (415) 271-2071

Comment balloon 2 commentsDavid Ames • November 02 2017 10:31PM

Comments

Hi David -- I often use the term "it is what it is" and your post certainly sums up the San Francisco real estate market quite succinctly with your "reality" check for those interested in making a move in your area.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) 9 months ago

Michael, that phrase makes a regular appearance in my vocabulary these days.  And not always just for Real Estate.  ;-)

Posted by David Ames, San Francisco (Zephyr Real Estate, San Francisco) 9 months ago

This blog does not allow anonymous comments