The San Francisco house market sailed through the second quarter of 2018 with a four percent increase in the average price over Q1. Buyers seemed to snap up inventory, perhaps fueled by the fear of rising interest rates.
The average house price was $2,036,529, with buyers paying an average of $1,018 per square foot. Volume was up a whopping 66 percent, as well, as the Spring market kicked into gear.
Half of all homes sold for up to $2M, and this segment of the market saw the most overbidding. Buyers scrambled to pay 25% or more over the list price most frequently in the Central Richmond, Outer Parkside, Inner/Central/Outer Sunset, Bernal Heights, Miraloma Park, Westwood Park and Mission Terrace.
Most notably, the west part of the city was an overbid magnet. Some of the standouts:
2527 42nd Ave (Outer Parkside)
3BR/2BA, 1400 sq ft
List price: $1,095,000 | Sold $1,646,000 (50%+)
2639 18th Ave (Inner Parkside)
3BR/1.5BA, 1930 sq ft
$1,050,000 | $1,775,000 (69%+)
1814 43rd Ave (Outer Sunset)
3BR/2BA, 1298 sq ft
$998,000 | $1,600,000 (60%+)
1718 24th Ave (Central Sunset)
3BR/2BA, 2207 sq ft
$1,198,000 | $1,800,000 (50.25%+)
1339 21st Ave (Central Sunset)
2BR/1.25BA, 1400 sq ft
$995,000 | $1,710,000 (77%+)
575 17th Ave (Central Richmond)
Major 3BR fixer
$995,000 | $1,600,000 (61%+)
All I can say about these types of outcomes are that they had extreme interest, and most buyers made offers who had no idea the prices would go that high. The pattern for homes listed at around $1M in the west part of the city is one that sees the winning bid in the $1.6M-$1.7M zone in a very competitive situation.
Only 8.8% of all homes sold changed hands for under the list price. That means most agents and sellers will continue following the list low/sell for higher strategy; no one wants to be the one to try to test the market with an actual buy-it-now price. At least, not once a property is in the MLS.
Cash sales accounted for 20% of all single-family home sales in the second quarter—slightly lower than the 25% I’ve been seeing for the last few years.
Though the summer market appears to be slowing a bit, expect sales in the Fall to be influenced by comps that have sold this year.