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Appreciation Rates Staggering in Select San Francisco Neighborhoods
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Median home sales prices in San Francisco, yet again, hit new highs in April 2018. New research by Paragon Real Estate shows the median house sales price jumped $55,000 over the March price to hit $1,665,000, and the median condo sales price jumped $50,000 in April to $1,225,000. Both figures were on a three-month-rolling basis.
Those reflect year-over-year increases of 23% and 8% respectively. Average dollar per square foot values also reached new peak values.
Paragon’s Patrick Carlisle notes that although median home price appreciation rates throughout the city have been incredibly high by any reasonable measure, some neighborhoods have outpaced the norm. The main reason is affordability; as less expensive homes have appreciated considerably faster than more expensive homes. Also, some of the most affordable districts were hammered by foreclosure sales after the 2008 crash, which brought sales prices down to unnatural lows by 2011, setting the stage for dramatic recoveries.
Due to supply and demand issues, condos have typically appreciated at somewhat lesser rates than houses. Paragon reports condos experienced a 10.3% annual compound appreciation rate between 2011 and 2017.
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