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The San Francisco real estate market is a dynamic and variable landscape. Qualified, measured and experienced advice is more important than ever! If you or anyone you know would like to discuss the current market environment and what it means for your particular situation, and talk about the best strategy for your real estate investments, please don’t hesitate to contact me. I am happy to talk on the phone or meet for a cup of coffee or tea and find out how we can make this market work for you.
From Compass Chief Economist Selma Hepp – Jan. 15, 2019
While San Francisco maintained housing-market momentum throughout 2018, with a total 9 percent increase in sales of single-family homes and condominiums compared with 2017, fourth-quarter activity slowed year over year. Slowing sales were widespread across price ranges except homes priced above $3 million, which continued to trend higher than last year.
At the same time, inventory improvements seen across the Bay Area were also evident in San Francisco, with more single-family homes and condominiums for sale compared with the fourth quarter of 2017.
Buyers remained more enthusiastic than elsewhere in the Bay Area, with both single-family homes and condominiums commanding premiums. In San Francisco, over half of homes sold for more than asking price, with single-family homes selling for average 12 percent premiums and condominiums selling for 5 percent premiums.
Even so, more sellers reduced their initial asking prices, leading to an increase in the number of homes that sold at a discount, from about 12 percent last year to 20 percent in the fourth quarter. Still San Francisco saw fewer price reductions than elsewhere in the Bay Area.
Looking Forward: San Francisco homebuyers remain determined, brushing off financial-market volatility and other uncertainties. With recent improvements in mortgage rates and stock performance, buyers should continue to forge ahead in early 2019.