2nd Quarter 2013 Update
In San Francisco, no market segment has recovered as dramatically as
that for high-end homes. There are a number of reasons for this: the
general economic recovery, the huge local increase in high-tech wealth,
an increase in the number of highly affluent foreign buyers, and the
fact that, as a group, the affluent have profited most from the large
rebound in stock market values in recent years. And then the general
appreciation the city has experienced of 20% â€“ 30% since 2011 has simply
moved a lot of sales into a higher sales price category. Whatever the
reason, there is an enormous amount of money sloshing around the Bay
Area that is now being invested in homesâ€”many of which are being
purchased all-cash. At Paragon, we have seen an increase of over 100%,
year over year, in the number of luxury home sales we have brokered so
far in 2013.
In the first chart below, we are defining luxury homes as condos,
co-ops and TICs selling for $1,500,000 and aboveÂ (the vast majority of
these are condo sales), and houses selling for $2,000,000 and above.
These are relatively arbitrary thresholds since a $2,000,000 house in
Presidio Heights can be a small-ish fixer-upper, while a home of that
price in another neighborhood might be a pristine mansion. In the charts
breaking down sales by neighborhood, weâ€™ve added the price segment for
houses of $1,500,000 to $2,000,000 since what is happening there is
quite interesting as well.
San Francisco Luxury Home Sales by QuarterContinue Reading