High stock markets, low interest rates, surging luxury home sales, limited inventory, a spring full of unicorn IPOs, and San Francisco - once again hits new highs in median home sales prices.
July 2019 Update
After 2 quarters of no or negative year-over-year home price appreciation, a confluence of positive economic factors sent San Francisco median home sales prices to new peaks in Q2. On a quarterly basis, the median house sales price hit $1,700,000 - $80,000 above the previous peak in Q2 2018 - powered by a monthly high of $1,770,000 achieved in June. For condos, the new quarterly median price peak was $1,250,00 - slightly above last year’s $1,235,000 - fueled by a new monthly high of $1,300,000 in June.
The market typically slows down significantly in San Francisco for the summer holidays through August before picking up again in September for a busy, though relatively short autumn selling season running through mid-November.
As with median sales prices, average dollar per square foot values reached new highs in Q2, bouncing back dramatically from the recent plunge. Overall, condos see higher dollar per square foot values than houses in San Francisco.
The first chart below breaks out luxury homes as defined by houses selling for $3 million and above, and condos, co-ops and TICs selling for $2 million or more.
The second chart looks at all home sales of $5 million plus.
A huge drop since late 2018 brings mortgage rates much closer to historic lows.