How have prices appreciated since 2011?
Paragon has recently released a report entitled “Appreciation of San Francisco Houses Since 2011” – and I’m betting it won’t be hard for you to figure out what it’s all about. It comes with the standard caveat: median sales price is an extremely general statistic that often veils a huge disparity of values in underlying individual sales. In addition, other factors such as changes in housing segments and available inventory can have their own effects on these figures. In other words, let the homebuyer beware.
When looking at the chart that accompanies this post, keep in mind that they’re grouped by San Francisco Realtor District, some of which have neighborhoods that have similar values, while others have home values that vary highly. Speaking in general, the statistics are more reliable the higher the number of sales. If you see an asterisk, that signifies a very low number of annual sales (often less than 20-something) and/or Paragon’s suspicion that the appreciation calculation would not reflect the reality of the market.
It’s also important to remember that, in 2011, median prices in some areas (and in particular the southern border neighborhoods of the city) were badly distorted by bank and short sales that didn’t represent fair-market values. In these areas, the four-year appreciation rate will jump higher.
Paragon has also done this analysis for San Francisco condo values: San Francisco Condo Price Appreciation, 2011 to 2015. The survey of the 2015 San Francisco real estate market is here: San Francisco Homes Market in 2015. As always, get in touch with any questions.