San Francisco Market Focus Report – January 2013
The January issue of Market Focus Report, issued by the San Francisco Association of Realtors has the San Francisco housing market dealing with strong buyer demand, steadily rising home prices and pockets of robust activity throughout the City. And with job creation remaining at the forefront for the City's leaders, we can all maintain a positive and fruitful outlook as we embark into the next twelve months.
The following is an excerpt from the report, and focuses on Single Family Homes. Those of you in the know, know that you can buy a home in San Francisco throughout a broad range of neighborhoods. And depending on the neighborhood, list prices currently start from $264,900 in the southwestern part of the City to an average high just under $2 Million, with the most pricey listing at $25,000,000 in Presideo Heights. There are currently 45 active listings over $1.5 Million. The Citywide SFH Median Sales Price currently sits at $850,000. Here’s an excerpt from the January report:
For homes that were priced below $700,000, the months of supply inventory dropped as much as 74 percent to a reading of 0.7 months. For higher priced homes between $700,000 and $1.2 million, the months of supply inventory also fell, by 40.2 percent to 1.3 months.
(These exceedingly short time frames are indicative of a seller's market, where sellers have more leveraging power over buyers who are vying against a limited amount of properties.)
One area of the City which sustained positive sales activity is in the Central District, located in the geographic center of San Francisco. Compared to December 2012, the number of homes under contract rose by 46.2 percent, while the total number of homes sold surged ahead by 42.9 percent, to 30 properties sold. The Central District includes such desirable neighborhoods as the historic Haight Ashbury, which until this day, still retains in bohemian quality from the 1960s, to the more clean-cut and family-oriented Noe Valley, whose typically sunnier weather and rows of merchant shops highlight the wholesomeness of its predominantly young community, and Twin Peaks, which offers some of the City's most remarkable views, thanks largely to its steep streets and high vantage points. The median price for a home here is $1,517,500, which is up by 12.4 percent from last year.
Business Insider reports: "Going into 2013, home prices are expected to rise 6 percent driven by steady demand, lower bank-owned (REO) sales, and lower inventory of unsold homes. This is according to CoreLogic's latest report. The CoreLogic Home Price Index (HPI) increased 6.2 percent in 2012, the largest increase and highest level since 2006. And year over year home price increases were more widespread. This increase in home prices across a broader geographic spread is expected to continue in 2013.
From the SF Chronicle, "Congressional efforts to reduce the U.S. deficit revised tax breaks for mortgage insurance and extended interest deductions for homeowners that will cost the government $600 billion over 5 years. Congress raced to pass the 'fiscal cliff' bill before Jan. 1 to avoid sweeping cuts and tax increases that jeopardized the economic recovery. Legislators also left in place a 2007 tax break for homeowners whose debt is forgiven by lenders and preserved exemptions for profits on home sales, while maintaining mortgage interest deductions. These moves could help a housing market that last year started to reverse a five-year slump that pushed the U.S. economy into the longest recession since the 1930s."
John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area