San Francisco’s Red Hot Real Estate Market

In April 2013 the S&P/Case-Shiller Home Price Index data for San Francisco showed a record-breaking annual increase of 23.9%. That was the highest for the nation with the S&P/Case Shiller Home Price Index Composite for 20 Major cities coming in at 12.1% for the same period.

The March and April Case-Shiller numbers are not yet out for April 2014 but the February 2014 figures for San Francisco show an increase in the index for the 12 months from March 2013 through February 2014 was 22.7%. ¬†Given the action in March and April of 2014 the home price index for the 12 months ending April 2014 should be equal or better than last year’s record breaking number. That will translate to residential price increases in San Francisco over the past 24 months in the ranges of 48%.

Kirk Economos, partner with Peggy Economos as agents at Pacific Union International in San Francisco and online at this site, HomesSF.com, studied the amount that buyers in San Francisco were willing to pay over asking. This is based on MLS data from the San Francisco Association of Real Estate.

From March of 2013 through April 15, 2014 the average monthly percent over asking ranged from 7% to 21%. That’s the average for all residential sales during each of those months. The average amount over asking for that entire period was 11%.

Average Over Asking Percent

Average Over Asking Percent

How much are buyers willing to pay over asking in San Francisco? On a monthly basis between 3/2013 to 4/2014, buyers were will to pay as much as 37% on the low and 69% on the high, over asking.

The accompanying graph shows the amount over asking that buyers have been willing to pay, as monthly averages for all residential properties sold for that month. Most interestingly, you can see the percentage accelerating and there are few indications of a slow down in San Francisco’s red hot real estate market.

 

 

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