Just how hot is the San Francisco market?

by sfishome on April 7, 2012

Just how hot is the San Francisco real estate market?

After losing in two multiple offer situations with clients this past week, in which both offers were at or above the most recent comps, it’s pretty obvious the market is hot. On one of the offers I estimate we were at least 4% lower than the accepted offer. On the other it was around 2%, and our offer was about 2% above the price they failed to sell the condo for just 6 months ago. Anecdotally this tells me the market may have appreciated 5% since the beginning of the year.

I’m hearing similar stories from other agents in town, and in Marin.

So just how hot is the market? In the past week 73 residential properties have sold throughout San Francisco. Of the 38 Single Family home sales 26 sold over their asking price, presumably with multiple offers. Only 10 of the 35 Condos, TIC’s, Lofts and Co-ops sold over asking. But still almost 30% of all condos is a lot, and over two-thirds of homes in insane. The average over the asking price for all homes was a a couple of percent.

This is a relatively new phenomena. During the first week of February only 13 of 44 Single Family homes sold over asking with the average of all home sales 1,6% below asking. And only 2 of 18 condos went over with the average 2.3% below asking.

I cut my teeth in real estate in the 2004 market when properties were selling for 10% more than the comparables. We’re not that hot, but anecdotally it appears to be 2% to 5% over the comps for the properties I’ve been involved in. Hold on to your hats, this could get interesting.

If you’re starting your home search start here If you’re thinking of selling drop us a line – we know buyers are ready, willing and able.

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