• The supply of listings valued at more than $2 million and $1.5 million is the concern for the single-family and condo markets, respectively
  • San Francisco's luxury segment is noticeably impacted by the holidays
  • Historically high inventory heading into a seasonal slowdown indicates the supply of luxury homes in the city is unlikely to decline soon

The number of luxury home listings in San Francisco reached a new high in October, signaling a shift in the buyer versus seller dynamic.

“Having so many active listings on the market just prior to the winter holiday doldrums is one of the reasons why we designate the luxury home segment as currently having moved into ‘buyer’s market’ territory,” said Paragon Real Estate Group in a recent third quarter report.

[Tweet “Paragon Real Estate Group: The number of luxury home listings in San Francisco reached a new high in October.”]

San Francisco’s luxury segment is dramatically affected by seasonality and typically goes into deep hibernation from Thanksgiving to mid-January.

gregobagel / iStock.com

gregobagel / iStock.com

As of October, there were roughly 140 single-family home listings priced above $2 million. Paragon estimates the city has 3.5 months supply of $2 million-plus homes. In the up-to-$1.3 million and $1.3 million to $2 million price ranges, the city has roughly 1.5 months of supply apiece.

Entering October, there were roughly 180 luxury condo listings priced at more than $1.5 million. The city has 4.5 months supply of this luxury product compared to 1.5 months supply of condos priced from $1.1 million to $1.5 million.

Reasons cited for the inventory growth include the city’s high prices, which have motivated some buyers to look at options outside the city. Additionally, more new luxury condos are being built in San Francisco, which gives buyers more options and negotiating room.

Despite the general cooling in the market since spring and the significant slowdown in higher end home sales, the overall median sales price of a home bounced back to $1.2 million in October.

“There are still high-end homes selling very quickly for very high prices amid competitive bidding,” the firm stated.

Two neighborhoods where this is still likely occurring are the Marina district and St. Francis Wood. In these two submarkets, median sales prices sit at $3.65 million and $2.7 million, respectively.

Email Erik Pisor.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×