We are effectively at or close to $1,000 per square foot for premium homes
You can pick your metric, but however you cut it, these are impressive prices. Bearing in mind that “average” prices tend to reflect “average” homes, we are effectively at or close to $1,000 a square foot for premium homes in premium neighborhoods – and those now definitively include Cole and Noe Valley. Areas like Glen Park and Bernal Heights have also made impressive price gains, as have the Inner Sunset and Richmond. (For long-term trends on specific neighborhoods, click here.)
Expect to Pay a Million Dollars for a 2 Bedroom Condo with a View
As for those two bedroom condos, not surprisingly the majority of sales are in the high-rises south of Market (SoMa) and Yerba Buena. If you’re looking for one in a newer building with a view, expect to pay a million dollars.
You can get the full report, which also covers 4 bedroom homes, 1 bedroom condos, and 2 bedroom TIC’s (tenancy-in-common units), here.
With no inventory available, prices are up 12% to 22%
According to our market research, “very generally speaking and varying widely by city neighborhood, thus far in 2012/2013, San Francisco home prices have increased by 12% to 22% over 2011 values.” This won’t come as any surprise to anyone who’s out there looking to buy right now, including, alas, my own clients. There is simply no inventory. The result is a classic supply/demand imbalance that is pushing prices up and up. Interest rates at historic low levels continue to fuel that demand. And the fact that interest rates are now trending upward could, in my opinion, add further upward pressure as buyers try to lock in low rates and maximize the loan amount they can qualify for.
Why is inventory so low? More about this next time.