SF Real Estate Market | A Year in Review | 2016
nvesting in a SF home is like investing in blue-chip stocks – Solid!
California leads the nation with 2.3% job growth for 2016 compared to 1.7% nationally. SF created 127,000 new jobs from 2010 to 2015 yet only 18,141 new building permits were issued. Of the top 10 U.S. markets in need of more housing construction, SF ranks #3. The more “underbuilding” the higher the price of your home.
People who sold in 2016 are pleased with their timing. The net cash gain to California sellers was the highest since 2007. The last SF market peak was May 2007 represented with a high median sale of $972,010. The median price in June 2016 was 38.9% higher than the 2007 peak high!
One down side to the high value of real estate is affordability is hindered. In Q2 2016 SF ranked lowest in affordability. The U.S. affordability was 57%, California was 31% and SF was only 13%. Rising interest rates will also impact buyers purchase power. Buyers will qualify for less as interest rates rise which will impact the pool of buyers in SF.
The single digit growth rate seen in 2016 will likely continue into 2017 as SF continues to move towards a more normalized market. San Francisco’s job growth coupled with the deficit in housing are leading indicators the SF housing market is poised to remain strong in 2017!
Information provided is sourced from: SF MLS, NAR, CAR, Census Bureau, CA Employment Development Division, Construction Industry Research Board. Summary above provided by Mary Ann Montano License #01926080.
All data is not verified. Subject to errors, omissions, or revisions. Prospective buyers or sellers are urged to investigate.