The SF Market: Looking Back and Looking Ahead
The real estate market recovery started in earnest in 2012 and then went white hot in spring 2013, which resulted in a huge jump in home prices. In the last six months of the year, the market calmed somewhat and prices generally stabilized, but buyer demand remained very strong by historical standards. Economic conditions have continued to improve, household net worth has increased dramatically with rising stock and housing markets, rents remain very high, new construction is soaring and interest rates, after jumping in 2013, are still relatively low. Though it is impossible to predict the future, these factors typically form the foundation of a healthy, active housing market. In the next few weeks, new listings will start coming on market, buyers will get back in home-search mode and the market will begin to wake up after the holiday hibernation. Then we’ll start to get an inkling of what the new year has in store.
This chart above gives a longer-term overview of city, state and national real estate price trends. Though varying by neighborhood, San Francisco has generally made a complete recovery from the market decline suffered in 2007-2011. Some city neighborhoods surged to new peak values in 2013.
This chart below tracks San Francisco median prices by quarter, illustrating how the rebound in values progressed in steps since the recovery began.
Please call or email if you have any questions or comments regarding these analyses.
All data from sources deemed reliable, but may contain errors and is subject to revision. Statistics are generalities and how they apply to any particular property is unknown without a specific comparative market analysis. All numbers should be considered approximate.
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