February 2015 report: market just waking up
Paragon has released its February 2015 report on the state of the San Francisco real estate market. With the market coming out of holiday hibernation, this may be a wait-and-see thing, but in the meantime there are some interesting things on tap around here.
On Feb. 1, San Francisco’s new short-term residential rental ordinance, also known as the AirBnB Law, went into effective. This means that in order to legally rent out your home for less than 30 days, you’re subject to requirements in terms of advertising, insurance, registration and taxes. You’re also subject to limitations on these rentals. Check the SF Planning Department for more information.
The graph that accompanies this article depicts median sales prices by year. If we look only at the fourth quarter of last year, both house and condo median prices were on the rise, climbing to respective all-time highs of $1,125,000 and $99,250, with the tenancy-in-common median price increasing to $829,500. Houses turn over far less often than condos or TICs and are the market’s highest-demand, most competitive segment. TIC sales, however, are down nearly 60 percent from 2007. We at Paragon think this is due to financing conditions and changes in laws pertaining to condo conversion and tenant eviction.
We’ve also graphed the quantity of new housing built in the city over time, dating back to 1940. The housing units built at that time were not only larger in number, but typically were two- and three-bedroom houses, while since 1980, the units built have generally been one- and two-bedroom condos and apartments. Keep in mind as well that a big development topic is building urban micro-units of 250 to 350 square feet.
More on the report in my next post.
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