SAN FRANCISCO'S Market pace...
Over the last four years, 85% of new listings of single-family homes have sold. This means that, if you put your single-family home on the market, you have an 85% chance of selling it (not to mention the 76% chance that its selling price will be over the asking price). Condos are not far behind at 82% of new listings sold. You would also sell that home faster than at any time in the last four years. For single-family homes, the number of days on market has stayed steady at fourteen for the last four months.
WHERE ARE WE NOW?
With the population of San Francisco increasing by about 1.4% a year, it can be hard to keep track of this fast paced market.
HERE ARE THE FACTS:
* Since the first quarter of 2005, single-family homes have appreciated 98.77%. Condominiums (which always lag a little behind single-family homes) have appreciated 65.92% over the same time period.
* The first quarter of 2018 saw prices for both condos and single-family homes hit new record highs: $1,610,000 for single-family homes, and $1,178,000 for condos.
WHAT'S COMING NEXT?
While we don’t have a crystal ball, a few things are clear. For this market to slow, some key dynamics would have to change. Changes to property tax laws (think AB1322) might free up more inventory, which would satisfy some of the intense demand of our growing population. If inventory continues to be sparse, and without a substantial increase in the building of new, affordable housing, the Bay area will eventually reach a saturation point in both people and income. This means there will be the maximum number of residents paying their maximum budget for housing.
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