May 2013: This is just a quick snapshot of the San Francisco luxury home market in April 2013 using 5 statistical charts from Broker Metrics. For a more comprehensive overview, see our San Francisco Luxury Home Market Report (under Market Dynamics/ San Francisco Real Estate Market Reports). In this analysis, luxury homes are simply defined as those selling for $1,500,000 and above: it will vary by neighborhood as to whether a house, condo or TIC in that price range would subjectively qualify as “luxury” or not.

In April of 2012, the percentage of total SF home sales selling in this price range was 10%. In April of 2013, that percentage made a huge jump to 18% of sales.

Broker Metrics charts can be a little hard to decipher: for greater legibility, you may wish to adjust your screen view to Zoom 125%.

Luxury Homes for Sale: Unlike the general inventory of home listings (which is much lower year over year), the number of SF homes listed and actively for sale for $1.5m and above in April – at 237 listings — though well below last autumn’s levels, was about 10% higher than it was last year, and climbing. Part of this is simply the appreciation of home prices we’ve seen over the past year: if prices are up 20% or more, then a fair number of houses that were listing and selling under $1.5m twelve months ago, will now be over that price threshold.

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April’s market was basically more of the same of what we’ve been seeing for the last 12-16 months in San Francisco. Virtually all of our statistics are at historic or near-historic readings: number of homes for sale way down, months supply of inventory way down, percentage of listings accepting offers way up, days on market way down — all leading to overall house and condo median and average prices climbing to perhaps the highest points they’ve ever reached. We will add the usual caveat that no one or two months of data should be considered definitive until confirmed over the longer term: though there is no doubt that San Francisco is experiencing a red hot market, prices can fluctuate for various reasons, including seasonality.

We will have to wait and see if the current heights reached in home prices are the new baseline, a springtime blip, or a way station to even higher real estate values.

 

 

These analyses were performed in good faith with data derived from sources deemed reliable, but they may contain errors and are subject to revision. If you have any questions, please don’t hesitate to contact us.© Paragon Real Estate Group, May 2013

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April 2013 UpdateMore condos sell in the South of Market (SoMa)-South Beach-Yerba Buena-Mission Bay neighborhoods than anyplace else in San Francisco. This is where by far the greatest number of new condos have been built since the 1990′s. The market here has been heating up very rapidly: buyer demand, prices and luxury condo sales have all been increasing rapidly in 2012 and continue to do so in 2013. With the crash in new construction in 2008, the number of brand new condos coming on the market rapidly declined, adding to today’s inventory crunch. (New condo construction is now dramatically rising again, but it will take a year or two before these units begin to reach the market.) This is one of the main areas in the country for high-tech and bio-tech businesses and home buyers, as well as being adjacent to the city’s large financial district.

Since opening our doors in 2004, Paragon has represented buyers and sellers in over 775 transactions totaling almost $700 million in sales in these neighborhoods. We’ve closed 170 sales of $1,000,000 or more, and almost two dozen of $2,000,000 or more. This is an area we know and love well.

If you adjust your screen view to a 125% zoom, the charts will be that much easier to read. On Windows systems, pressing the Control and + keys simultaneously should do this quickly.