Although known for exorbitant real estate, San Francisco home prices fluctuate regularly by month and even season-to-season from a broader scope. Between 2012 and 2015, median sales prices usually rose noticeably in the spring and then faded off, or even dipped, in the summer.
Paragon Real Estate Group recently released its May report, outlining both short and long-term trends for the City by the Bay. Since 2012, the spring has regularly proven itself to be the liveliest season for the city with high demand and low supply.
Par for the course, home prices in San Francisco jumped up again in the fall and then dropped off again in the winter.
[Tweet “home prices in SF jumped up again in the fall and then dropped off again in the winter”]
In a hot home market like San Francisco, the assumption that the city is immune to these fluctuations is passed around often. But Paragon’s data shows there is (and was) wiggle room in one of the priciest areas of the country — if you time it right.
The combined median sales price for both single-family homes and condos hit a new high in April at $1.285 million.
List price vs. sale price: decline from 2015
While all sales prices were higher than original list prices for homes above $1.35 million in April, condos with a price tag over $2 million sold for 1.4 percent less, on average, than asking price.
Similarly, homes with list prices over $3 million didn’t receive as much over asking compared with mid-tier properties. At a 1.7 percent average over asking, the most expensive houses were the least profitable of all segments.
Houses up to $1.35 million sold for 15.4 percent above asking price, illustrating high competition amongst buyers in the Bay Area despite the slowing annual appreciation. Meanwhile, houses between $1.35 million and $2 million saw 13.1 percent above asking, and houses between $2 million and $3 million got 5.6 percent above asking.
However, every category, both houses and condos — with the exception of houses $1.35 million and below — saw drops between 2.5 and 6 percent in sales price to original list price. Meaning, sellers aren’t receiving as much over asking price as they did last year, a potential indicator of softening demand.
Condo market slowing
In April, there were more $2 million-plus condos for sale on the MLS than ever before. At the same time, sales activity within this category has decelerated.
Paragon says neighborhoods drive price per square foot values for houses, whereas buildings and floor levels typically alter condo values.
