2017 saw two foundational trends continue in the San Francisco real estate housing market. Prices continued their trend upward while inventory continued its trend downward. It marked the sixth straight year for higher sales prices for both single family homes and condo/loft/TIC’s.
Two changes, one already implemented and one in the making, may have a significant impact on the housing market, in San Francisco and across the country. First, the tax changes may impact buyer behavior with the reduction in deductibility of mortgage interest and possibly state income taxes and property taxes, with the latter two still up in the air.
Second, the projected three hikes in the federal funds rate by the Federal Reserve are anticipated to result in mortgage rate increases of ½ to ¾ percent by the end of 2018. Additional factors will affect mortgage rates so it’s impossible to predict where they’ll end up and how they’ll get there. No expert expects them to stay as low as they are currently.
Single Family Homes:
2017’s median sales price is up 12.2% from 2016.
There were 5.5% fewer new listings in 2017, and 1.5% more sales.
Inventory ended 2017 down 31% from 2016, the lowest level in 10 years
78.7% of homes sold over their list price and the median percent of list price received was 113.4% for 2017.
2017’s median sales price is up 9.3% from 2016.
There were 6.2% fewer new listings in 2017, and 3.4% more sales.
Inventory ended 2017 down 24% from 2016, the lowest level in 3 years.
59.5% of homes sold over their list price and the median percent of list price received was 101.9% for 2017.