After first decline in years, SF home prices hit all-time high in April 2016

Last week we drilled down into the recent decline in SF home prices. Instead of a market downturn, we found that the decline was isolated to homes and especially condos sold above $3M. Below $3M, prices continued to increase and competition was fierce.

San Francisco Median Home Prices April 2016

April 2016 - Back to normal/crazy

At the time of publication, there were 394 single-family homes and condos reported sold to the San Francisco MLS in April 2016. Their combined median sales price was $1,285,000, which is a new all-time high. This was 23% higher than the previous month and 6% higher than April 2015. Sales volume remains low: 394 sold vs 492 in the same period last year, a 23% YOY decline. The previous high of $1.26M was in May 2015.

San Francisco Amount Sold Above Asking April 2016 San Francisco Average Price Per Square Foot April 2016

Beyond the median, different markets at each price point
  • Single-family homes (60% of total sales) are selling way above asking at all price points.
  • Home and condos below $1M (30% of total sales) are increasing in price/sqft. Above $1M, home values are declining on a price/sqft basis.
  • Luxury condo market is weakest with condos over $3M (2% of total sales) going for 2.7% below their asking price on average. There's very low volume in that range: only 8 condos for over $3M in April.

Interesting times! We'll continue to closely monitor the SF markets for any signs of change.

Data sources: San Francisco MLS (dataset available by request). Median home prices prior to April 2016 via Paragon RE. Thanks to Patrick Carlisle from Paragon for confirming these findings.