1. It’s More Expensive: Overall it was 7% more expensive to purchase a Single Family Home and 6% more expensive for Condos in 2017 than 2016.
2. Less to Buy: Year-over-year, the number of homes for sale was lower by 19.9%.
3. Low List Price: Properties continue to go over ask price. Single Family Homes received 115.1% of their list price and condos 105%.
4. District 3 Was On Fire: The Southwest part of the city (Ingleside, Oceanview, Lakeside, Merced Heights), District 3, showed the greatest appreciation +15.8% since 2016 at $1.1M, and +67.3% since 2013 when the median property was just $657,500.
5. Biggest Bang For the Buck: It’s been a long-standing theme - District 10 (Bayview, Crocker Amazon, Excelsior, Outer Mission) was still the most affordable area to purchase a home at $887,875.
6. Most Sales (SOMA, Mission Bay, Potrero) - District 9 had the most sales at 1,297, thanks to an influx of condo inventory.
7. Most Condos - District 8 owned the biggest market share of condos at 95.3%
8. Quickest Place to Sell Your Home: District 4 saw the shortest Days On Market at 22.
9. Average Time To Sell: All-in-all it took 33 days for a property to sell in SF.
10. Most Bedrooms: District 3 & District 4 reported the most market share for 4 bedrooms for sale at 42.2% and 41.1% respectively.
So What Does This Mean For 2018?
Year-over-year inventory levels have been down in most markets for several years now, and that trend is expected to persist in 2018, especially in SF.
Sellers should feel ready and willing to list in 2018. Economic indicators such as unemployment rates and consumer confidence are in an improved state, and sellers currently hold the keys in the buyer-seller relationship. This does not mean that sellers can set their price and watch the offers roll in, pricing is crucial in SF and the trend to price low and let the market determine the final price is still the name of the game.
The historic tax reforms due to make their mark in 2018 will have varying effects across the nation. High-priced coastal markets like SF may feel the changes stronger than the middle of the country. And some potential buyers may see the changes as providing less of an investment benefit for homeowners.
For those who have their minds made up to buy a home in 2018, it will likely be a competitive ride. The trend has widely been toward fewer days on market and fewer months of supply, indicating strong demand despite higher prices and low inventory. This could prove tricky for first-time home buyers, especially for those who are impacted by student loan debt. If you're looking for value opt for Districts 2,3, and 10. To read more about how to get a DEAL in SF, click here. And to work with Emily please contact her at email@example.com