San Francisco median home price hits plateau?

Fri, 30 Aug 2013 06:19:28 +0000

After soaring to the sky like Icarus, the San Francisco median price for sold homes has finally fallen. Not as dramatically as Icarus fell, mind you– more like a gentle downward current pushing that price point from $915K (for both condos and single-family homes) in May of this year, down to $870K in June and then slightly up from there to $879K in July, staying fairly flat into August.

Meanwhile, a perusal of the MLS for San Francisco homes listed within close range of the current median of $879K reveals a market still rather over-heated. For instance, this unit on Ashbury is 2 beds, 2 baths, 1,300 square feet, listing at $899K. It is a recent conversion to a condo, and includes a shared yard, 1-car parking and extra storage. Still, that’s almost $700 per square foot.

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For luxury high-rise condos, we have this example in the SoMa Grand building, a 1,031-square-foot 2-bed/2-bath that includes use of community features like a lounge, gym, courtyard and spa. Listing at $895K, this one also comes with an HOA of $678 per month.

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Crazier still, but perhaps down to its location, is this listing on Homestead in coveted Noe Valley, a single-family home. No interior shots yet, as the house is still marked “coming soon,” the listing does reveal that it’s only 708 square feet. And the price, $949K, would make it $1,340 per each of those squares.

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As Paragon Real Estate Group explains:

Monthly median prices are often subject to fluctuation without great meaningfulness, but after the big, definitive jump early in the year, the median sales price has been within a 4-5% spread for five months, including a drop from an April-May spike. The idea of a plateau contradicts the recent Case-Shiller Index reports of continuing increases, but

1) the C-S Index is about 3-5 months behind current realities

2) San Francisco is only a tiny part of the 5-county SF Metro Area Index

3) The city itself has strongly outperformed C-S Index since the turnaround began – having appreciated so much faster than other places, we may be due a flattening of appreciation before other areas. And, of course, this also may be true for different SF neighborhoods which began their rebounds at different times and have accelerated at different speeds – some may be plateauing while others are still appreciating.

Other factors to consider in this slight cooling of what’s been a red-hot market: seasonality, higher-interest rates, and buyer burn-out due to low inventory, or buyers becoming more willing to push back against high prices. “We may have reached a plateau or bumped into a ceiling of what buyers are willing to pay, thus transitioning into a somewhat different market from spring’s overheated frenzy,” hypothesizes Paragon. But of course, time will tell.

What Should We Expect for Fall?

Chime in, readers: what should be next for San Francisco home prices? Have we hit the ceiling yet, or will Icarus fly still closer to the sun?

Bumped our head on the ceiling? Data via Paragon Real Estate Group. http://www.paragon-re.com/Market_Updates/

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert

Article source: http://blog.sfgate.com/ontheblock/2013/08/29/san-francisco-median-home-price-hits-plateau/

High-rise Condo Living Getting New Life in San Francisco

Mon, 29 Oct 2012 19:45:28 +0000

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PR Web

San Francisco, CA (PRWEB) October 29, 2012

Real Estate Marketing Insider offered its expert opinion about a new trend of modern high-rise investment by young tech professionals in San Francisco, stating it was great news for the real estate market as the number of high-price and high-demand properties available in the city would increase exponentially as a result.

The New York Times stated that the tech industry’s San Francisco base of operations is in the South of Market area of the city; it has been there for decades, but the newest generation of young professionals in that industry have been investing in high-rise condo living, a real estate option that simply wasn’t present in San Francisco until recently. Now there are downtown glass-and-steel real estate site design condos available downtown for prices for substantially less than some New York housing options.

These downtown high-rise condos include The Montgomery, Millennium Tower, Four Seasons, and One Hawthorne. The areas outside of South of Market, like the financial district and Mission Bay have their own offerings, like Madrone, the St. Regis, and the recently-filled Infinity. The residents of these condos, while primarily employed by local tech companies like Google, Twitter, and Zynga, come from many different walks of life. They include real estate professionals, venture capitalists and even celebrities like former San Francisco 49er Joe Montana and chef Michael Mina, both residents in Millennium Tower.

The newer neighborhoods of South Beach, Mission Bay and Rincon Hill have much more relaxed zoning regulations than older neighborhoods like Golden Gate Heights or Fisherman’s Wharf, enabling investors to construct more ambitious, luxurious properties. Millennium Tower, the city’s tallest residential building at 645 feet, is a harbinger of things to come as more developers tap into these prospective markets.

The single biggest motivator for the purchases of these high-rise properties, above and beyond desire for luxury and convenient living, is the tight rental market in San Francisco. These downtown properties offer a rare chance for city living that rental does not, and other benefits, like proximity to on-ramps and train stations that ease the commute to Silicon Valley, make these sales an easy decision for young tech professionals.

The Real Estate Marketing Insider released a statement regarding the New York Times’ report that high-rise condo living in San Francisco has exploded in popularity among young tech professionals in the city. The newer neighborhoods like South of Market and Mission Bay have seen an influx of new high-rises in the last five years, and the properties contained therein are selling well among techies, as well as other wealthy Bay Area professionals.

About Real Estate Marketing Insider:
Real Estate Marketing Insider is an online journal providing hot news, trend analysis and marketing tips to real estate professionals. REMI is based out of La Jolla, CA.

Read the full story at http://www.prweb.com/releases/san-francisco-high-rise/steel-glass/prweb10067686.htm

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Article source: http://www.equities.com/news/news-headline-story?dt=2012-10-29&val=643723&d=1&cat=headline

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San Francisco median home price hits plateau?

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High-rise Condo Living Getting New Life in San Francisco