You’re not crazy: it doesn’t just seem like San Francisco Bay Area real estate prices are out of control. According to a Paragon Real Estate report charting the Bay’s real estate appreciation from 2011 to mid-year, 2015, prices are record high. “The higher priced counties, led by San Francisco and San Mateo, saw the largest dollar increases in median prices since 2011 – $400,000 to $500,000 – but counties rebounding from the distressed property crisis often experienced the biggest percentage jumps. The city of Oakland, benefiting from both the decline in distressed sales and being the closest, most affordable option to high San Francisco housing prices saw by far the largest percentage increase: 133%.”
The gallery above shows not only data for this appreciation, but also in what neighborhoods (the Mission and Yerba Buena, take a bow) the biggest jumps have occurred, as well as the rise in price per square foot in both condos and single-family homes. (For more data and the original report, go here.)
Why the steep hike?
Paragon surmises that the country’s economic recovery is only part of the equation here. Other factors include:
- 1) the huge decline in distressed property sales in those counties severely affected during the downturn (such as Solano, Contra Costa & Alameda)
- 2) the dramatic surge in luxury home sales (such as in SF, San Mateo & Marin)
- 3) increasing luxury condo construction (SF)
- 4) the effect of the high-tech boom in employment and wealth, which radiates out from San Francisco and Silicon Valley.
We might include a 5th, the population growth in the area coupled with a famous dearth of available homes for sale.
Median now
According to Redfin, the recent median sales price for all properties in San Francisco is now at $1.14 M.
Going up! Median and other sales data via Redfin San Francisco
What does this look like, in a condo and in a single family home? The gallery below will illustrate:
In a nutshell, the first half of this year has been quite the party for sellers. Buyers on the other hand, may understandably feel a little hung over.
Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert
