Welcome to fall; there is a lot happening in the market so let’s get right into it. First, from a big picture Bay Area view of the market, prices were down 2.4% on a year-over-year basis. Keep in mind this is a “summer” number and late summer is generally slow in terms of activity. Also, the sales activity numbers took a large hit; the lowest number of sales in nine years.
Here are the County numbers:
What about San Francisco? The market continues to move well; especially in premium neighborhoods. The entry level category is strong as always but the $2.5M-$4M category is a bit slow. In this category, buyers are expecting perfection. If the property is fully priced and not “move-in” ready, it may sit. The luxury and ultra-luxury market is performing well. For reference, last quarter there were 16 sales over $5M; eight of which were over $7.5M. More on this in the neighborhood review.
Although the ultra-luxury market looks strong in San Francisco (also the Peninsula and Southern Marin), the segment is down in the other California power-center, Los Angeles. Fore reference, in Los Angeles area sales this year:
-There are 339 closed sales of $5M+ (402 at this time last year)
-Of these, 90 were $10M+ (111 at this time last year)
-24 were $20M+ (33 closed sales this time last year)
-13 of these sales were $30M+ (12 at this time last year)
-6 were $40M+ (5 last year at this time last year)
Where are the 24 $20M+ buyers coming from? 15 American’s, three from the Middle East, two Chinese and the balance were European.
On to our corner of the City. In non-real estate news; Andronico’s Community Market won approval to open in the old Fresh & Easy location on 32nd Avenue. This is great news and for those that have not been in the Andronico’s on Irving; it’s a great market. I’d rate it above Whole Foods.
As for the market activity, it’s been very quiet. Only four sales in Sea Cliff and a surprisingly low three sales in the Lake Street Corridor. Speaking of Sea Cliff, two of the sales were “substantial.” 140 Sea Cliff came to market at $19.5M and quickly sold for $18M. To give you perspective on the ultra-luxury market in San Francisco; at the time I visited the home on broker tour with a client, there were eight other brokers with their buyers also looking at the home. This may not sound odd; but to have nine buyers (at the same time) with $20M budgets looking at a home at the same time speaks to the (a) demand for one of a kind homes and (b) the incredible wealth in the City. The other notable sale was 4 Sea Cliff which sold off market for $16M.
Here are the consecutive quarter & year over year numbers:
Here are the top sales of the quarter: