May 2015 market report: record-breaking continues
And the records keep falling. That’s according to Paragon’s May 2015 real estate market report, which finds that median home sales prices are continuing to hit new highs in San Francisco neighborhoods as conditions continue to accelerate. For more details on that, see the chart that accompanies this article, which graphs monthly house and condo median appreciation in the city since the market recovery began in early 2012, and also check out the San Francisco Neighborhood Map.
In the high-end market, we’re continuing to see a plentitude of new highs, with last spring the hottest on record. This year we’re seeing those numbers fall like dominos. For more information on this segment, see our updated luxury report: SF Luxury Home Market Report.
If you consider the CAR Housing Affordability Index, which is calculated using median price, household income, interest rates and other financial criteria to determine the percentage of local households which can afford to buy property, San Francisco, Marin and San Mateo have extremely low affordability readings (14 to 15 percent) as compared to other parts of the country (31 percent for California and 59 percent nationwide).
With regard to affordability, if your choice is between paying extremely high rent or buying a pricey home at today’s low interest rates and with all the tax advantages of homeownership, it’s typically more advantageous to buy, particularly over the long term. That said, you have to decide what is best for your individual financial situation.
Right now there is a fierce political struggle with regard to new-home construction in San Francisco, with a good chunk of new property in the pipeline. See our full report on the topic: Paragon Housing & Construction Report. Note that new-home development often cycles through booms and busts, with the local process easily taking 4 to 6 years.
Want to evaluate your own piece of the real-estate puzzle? Get in touch.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com