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San Francisco Luxury Home Sales Volume Surges Again
After a significant drop in San Francisco luxury home sales in late 2015 to mid-2016, amidst considerable financial market and political volatility, the number of sales bounced back in 2017 to hit new highs in sales volume. Paragon Real Estate’s latest research shows, so far in 2018, luxury home sales in San Francisco have been higher than in any previous year since the recovery began in 2012, perhaps driven by economic confidence that has been sweeping the nation.
Paragon notes, for example, mid-February sales numbers of condos, co-ops and TICs at prices of more than $2 million jumped 55% in the city, year over year, and luxury single-family homes increased 19%.
However, behind the positive sales statistics, inventory statistics provide a note of caution, especially in the ultra-luxury home segments ($5 million+ houses and $3 million+ condo/co-op properties). In the ultra-luxury segments, the supply of listings has been surging beyond demand, with many listings expiring without selling. The supply-and-demand dynamic has been greatly affected by new condo projects targeting the very high end, with more projects coming.
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