R E A L Estate
News & Musings
San Francisco single family home values continue to perform particularly well, with many neighborhoods seeing purchasers paying significantly over list prices. Median market time also improved, measuring at just 3 weeks, versus 4 weeks the year before.
There are 1,100 new condominiums on the market, as compared to just 450 units a year ago. Condominium appreciation will likely improve as the number of available condominiums is projected to decline by half, by the start of next year.
2016 was a year of moderate growth for the San Francisco Real Estate Market. The overall median sale price for 2016 came to $1.2 million, an increase of 4%. Properties took a one week longer to sell a property in 2016, compared to 2015 Nationally, the labor market ended the year with an impressive unemployment rate of 4.7%, below the 5% natural rate of employment.
The new San Francisco real estate market is shaping up to be a more measured version of the market seen last year. As an example, properties are taking about a week longer to sell than before, and the rate of appreciation has gone from double to single digit rates. Furthermore, the Months Supply of Inventory (MSI) has expanded to almost two months, versus the one month level seen last year.
There is, however, continued upward pressure on pricing. The most recent median sales price grew 8% year-over-year. Additionally, April's citywide median sales price is 15% higher, when compared to January's median. Strong economic fundamentals continue to propel property values upward. The City's unemployment rate is hovering around 3%, and the office vacancy rate measures around 5%, both at near record lows. With the prospect of oil prices stabilizing, the national economy appears to be on better ground. Reuters recently reported on the markets, stating that "First-quarter earnings for S&P 500 companies are mostly beating analysts' expectations".
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The overall Q1 2016 median sale price rose six-percent quarter-over-quarter to $1,160,000, while the number of sales declined by twelve percent. The top ten percent of the market (> $2.325MM) saw five-percent growth in the median sale price, and properties in this category took about a week less to sell than the overall market. On the other end of the spectrum, single family homes in the Southwest section of the City have seen median home price appreciation north of 25% quarter-over-quarter.
The local economy continues to prosper, with recent unemployment figures clocking in at 3.3%. The Wall Street Journal recently reported that US Venture Funds have collected about $13 billion in the first quarter, the largest total since 2000. It is anticipated that there will be a number of technology IPOs this year, depending on stock market volatility.
