San Francisco Real Estate Spring Market
May 7, 2019 — Source: Compass
San Francisco Real Estate
High-Demand Spring Market Slightly Below Last Year's Home Price Peaks
May 2019 Report
With April’s end, we now have 2 months of spring season data unaffected by the end of 2018, when financial markets plunged. As of early May 2019, stock markets have recovered to hit new highs, interest rates are far lower than last year’s peak, and our local, unicorn IPOs have begun to roll out after a media frenzy of speculation on their potential effects on the market.
The market has heated up considerably from the slowdown in the second half of 2018, with strong buyer demand for a very limited inventory of listings. Median home sales prices have returned to highs close to those in spring 2018, but, so far, last year’s peaks have not been exceeded. This is a big change from the year-over-year appreciation rates of the past 6-7 years.
However, there are still 2 months of spring sales data to come in (before the typical summer slowdown),and word on the street is that some new listings are again generating feverish bidding wars between buyers.
Monthly Median House Sales Prices
Monthly median sales prices are often affected by other factors besides changes in fair market value – for example, the extreme seasonality of luxury home sales – but the above chart helps illustrate trends over the past 2 years: Spring 2018 was one of the hottest markets in history, with dramatic year-over-year price appreciation. The market then cooled, stock markets turned scary, and interest rates climbed. 2019 has heated up again, but, so far,
without any y-o-y median price gains.
The most expensive housing market in the country has, for the time being, stopped becoming more expensive.
The table below compares the March-April market statistics of 2018 and 2019. Prices were stable, overbidding was down, and luxury home sales were up, but most statistics were remarkably similar to last year's. The SF and Oakland-Berkeley markets are currently the strongest in the Bay Area.
Venture Capital Investment
In recent years, the Bay Area has been the biggest destination of venture capital investment dollars in the country - and probably the world.