Buyers in the top 10 percent of single family homes in San Francisco, those priced at $2,800,000 or above, continued their historical trend of increasing sales in April over March, with 87 homes selling vs. 63 in these Spring 2016 months. Total number of sales in this price range is up from 250 to 267 year-to-date vs. 2015. This roughly 7% increase may actually just reflect the approximately 7% price appreciation in that price range, as additional homes moved up into that price bracket.
Luxury Condo Market Downshifts
Luxury condo/loft sales have backed off their 2015 pace and prices. In the first four months of 2014, there were 871 condo/loft/TIC sales in San Francisco. The top 10% sold for $2,135,000 and above. Fast forward to 2016, and in those same first four months just 773 sold, with the top 10% starting at $1,950,000. The top 10% price threshold peaked Q1 in March of 2015 and then dropped the three following quarters to $2,075,000, $1,852,000 and then $1,850,000 in the last quarter, before rebounding this year to $1,950,000.
Luxury Condo Market Downshifts
Moreover, the number of active luxury condos for sale in the $1.85M+ price range is now at 91, the largest inventory in the past 10 years. Months supply of inventory is also at its highest level since October, 2013, at 4.7 months. A balanced market is considered to be approximately 6 months supply, which San Francisco hasn’t had in this luxury price range since September, 2012.
