Paragon autumn report: luxury market sees surge
Yesterday we began a discussion of Paragon’s San Francisco Autumn Real Estate Market Dynamics report. Today let’s continue that conversation. First off, the chart that accompanies this article depicts the San Francisco luxury home market, which saw a major surge in terms of sales during October. In fact, this was the biggest month ever for San Francisco home sales in excess of $2 million, with 61 sales on the books.
Additionally, we saw 55 sales of luxury condos – and that doesn’t include the market response to South Beach’s new ultra-luxury Lumina project, where between 80 and 100 pricey condos went into contract but won’t close escrow until close of construction in 2015 or early 2016.
Now let’s talk average days on market. In October, the average DOM for luxury homes was 21 days, and 28 days for luxury condos. These are quite low and show a quick market response to the listings that were bought.
In terms of median sales price, it’s important to remember that luxury home sales usually go up in spring and autumn and then drop in summer and mid-winter. Concurrently, the overall median price is affected by this rise and fall. That said, for the last three years, the general trend line has been dramatically up in terms of price. A huge percentage of San Francisco home listings are continuing to sell over – and sometimes far over – asking price, but an increasing percentage of listings are failing to sell at all. Just because a market is hot doesn’t mean that buyers will take any property at any price.
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