Though the price range from $400,000 to $900,000 has been busy this year, the luxury home market has been much slower. But it’s not a completely dead market segment.
In the first six weeks of the year, eight single-family homes for $1.5M or higher sold in San Francisco. Interestingly, the homes were spread out across neighborhoods that included The Haight, Noe Valley, Eureka Valley, Lower Pacific Heights, The Marina, and Pacific Heights.
A good indication of how the market will fare over the next month is via the number of pending listings. To date, there are six single-family homes pending in this price range, all priced at $1,775,000 or above.
On the condo front, 43 listings sold at $1.5M or higher, predominantly in the north end of town. Four listings are pending.
What credit is available to buyers in this price range? According to my colleague at First Republic, the bank can offer loan amounts between $1.1-$2M. It has a 7/1 ARM @ 5.35%, 0% points, 1% 3 year pre-payment penalty, and a 10/1 ARM @ 5.50%, 0% points, 1% 3 year pre-payment penalty. Minimum down payment is 25%. This quote is for a purchase of a primary residence, and assumes an existing banking relationship with First Republic.