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San Francisco January sales results

by Rob Regan on February 16, 2013

Just how hot is the San Francisco market?  Reviewing MLS sales that closed in January in the 8 of the 10 San Francisco “districts” that we conduct almost all of our business in, there were 92 Single Family homes that closed escrow.   Two-thirds sold ABOVE the asking price.

Further, 25% sold at 10% or more over the listed price, and 42.4% sold at 5% or more over asking price.  The record over bid was a home in Potrero Hill listed for $999,000 that went $351,000 or 35% over.  Six other sales sold for $200,000 or more over the asking price.  Whether these homes were severely under priced, or the buyers were especially desperate/desirous of these homes would take further study.  But the stats don’t lie – the SAN FRANCISCO MARKET IS HOT.

Looking in the same San Francisco “districts” for Condo and Loft sales (I excluded TIC’s and Co-ops for this exercise) there were 130 closed sales per the San Francisco MLS in January.   Per the stats the Condo/Loft market wasn’t quite as hot.  Only 7% sold for 10% or more over the asking price and 18.5% of the 130 Condo/Loft sales went for 5% or more over the asking price.  The condo with the biggest over bid was in Haight Ashbury which sold for 18.5% over the asking price or $111,000 above the original $599,000 list price.   Based on these numbers you might surmise that the condo market is half as hot as the Single Family home market.   But that’s still pretty darn hot.

Why so hot?  Because rents are at or near record highs, interest rates are at or near record lows making home buying the most affordable it has been on this basis quite possibly in the history of San Francisco. And because for-sale inventory in San Francisco is the lowest I’ve ever seen.  Come on would-be Sellers, buyers are desperate.

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