We finished a banner year in San Francisco with real estate sales that reached an all-time high. The usual holiday lull never happened — we were showing houses on December 24th! The activity continued during the first week of January with record attendance at open homes.
In 2017, the median sales price for single-family homes rose to $1.42 million, up 7.16 percent from 2016. For condominiums, the median sales price of $1.15 million was a 5 percent increase over 2016.
To put our market in perspective, the median price for existing homes in the entire state of California is $540,000. In the United States, the average house is $248,000.
An Expanding Luxury Market
For the first time, District 5, which consists of Noe Valley, Eureka Valley, and Cole Valley, recorded the highest number of sales above $3 million in the city. Of those 83 total sales, seven were priced above $5 million.
District 7, which consists of Pacific Heights, Presidio Heights, Cow Hollow, and the Marina, recorded a total of 79 sales above $3 million; 45 of those sold for more than $5 million.
The Top Five Most Expensive Homes Sold in San Francisco 2017:
- 2712 Broadway, the most expensive home sale on record in San Francisco, sold for $38 million
- 3277 Pacific Avenue, sold for $30 million
- 3090 Pacific Avenue, sold for $16.5 million
- 2698 Pacific Avenue, sold for $16 million
- 3540 Jackson Street, sold for $15 million
New Year, New Rules
The rules governing the mortgage interest deduction in the newly passed tax law could impact borrowing. 2018 is a year with new tax laws, new land use issues, a new Planning Commissioner assignment, and of course many Planning Code amendments. I recommend keeping up to date with the latest local real estate planning and development news by following Reuben, Junius & Rose LLP.
According to Mortgage News Daily, applications for both refinancing and home purchasing were up substantially during the first week of 2018. Mortgage rates are expected to average 4.6 percent throughout the year but reach 5 percent by December. If you haven’t already, the time is now to refinance.
Strength in Numbers
Investment in San Francisco real estate remains sound and home prices continue to increase. The US GDP is expected to grow 2.5%. Unemployment in San Francisco is at a historic low of 2.3%. Salaries in San Francisco are the highest in the country. Millenials are bullish and buying.
Anne Laury, Top Producer, Coldwell Banker Global Luxury