2007 was a year of moderate, sustainable growth in real estate prices in San Francisco.  City-wide the average sale price of homes listed in the MLS increased by 11.5%.  The average sale price in the City ended up at $1,230,000, $127,000 more than last year.  There was a continued shortage of new inventory, coupled with buyer hesitation, which resulted in the number of home sales being down 15% from last year and at their lowest level since 2001.  Well-priced listings continued to attract multiple offers.

 

Condominium and cooperative apartment sales activity showed a smaller volume drop of 8% City-wide, compared to 2006, but the number of sales through the MLS in those categories does not count several large developments (which close units but do not list them all with the MLS) and it does not include Tenancy-In-Common (TIC) sales.  City-wide the average sale price was up, by $56,000.  In the prime areas of Districts 7 & 8, the average sale price of a condominium increased by $71,000, or 7%.  The sales volume drop in this category would not be quite as great if TIC sales were included.  TIC data is inherently unreliable though, because sales also get entered for the entire property as an undivided multi-unit building (which legally it still is), so TIC sales are not included in the averages below.  But there is no doubt that the TIC market has grown significantly in San Francisco in the last 4 years as a result of local politicians continuing to choke off the supply of affordable, legal condominiums by keeping in place a highly restrictive condo conversion process.  In 2005 TICs represented 16% of sales in the condo/co-op/TIC category, in 2006 that number had increased to 21%, and in 2007 it is close to 24%.

 

The tightening of the mortgage market which followed the failure of a few of the higher risk-taking mortgage lenders did not appear to impact the San Francisco housing market to any significant degree.  The breadth and strength of the local economy attracts home and condo buyers with good incomes and credit histories, and sufficient assets to satisfy the local lenders.

 

For 2007, there were 1500 closings of listed homes, condos and co-ops which sold for $1,000,000 or more, compared to 1376 in the same period last year, just over a 9% increase, which is reflective of a strong high-end market despite the overall drop in sales activity.

 

A full 2007 versus 2006 district-by-district sales comparison chart for both homes and condominiums is shown below.  This is current as of January 13, 2008.  Some late sales data for 2007 may still get entered, but that should not alter the statistics below by much.

 

The San Francisco District Map can be viewed by clicking on this link: http://www.classicSFproperties.com/districtmap.htm

 

2007 vs 2006 San Francisco sales analysis

 

SFDs

2007

2006

#change

$change

District

#sales

Avg. SP

Total sales $$

#sales

Avg. SP

Total sales $$

 

 

1

196

$1,561,551

$306,063,996

195

$1,362,887

$265,762,965

0.51%

14.58%

2

436

$892,052

$388,934,672

528

$839,371

$443,187,888

‑17.42%

6.28%

3

165

$1,130,332

$186,504,780

224

$781,162

$174,980,288

‑26.34%

44.70%

4

329

$1,127,777

$371,038,633

380

$1,076,121

$408,925,980

‑13.42%

4.80%

5

324

$1,476,531

$478,396,044

373

$1,409,690

$525,814,370

‑13.14%

4.74%

6

43

$1,613,116

$69,363,988

36

$1,588,931

$57,201,516

19.44%

1.52%

7

102

$4,454,931

$454,402,962

116

$3,695,929

$428,727,764

‑12.07%

20.54%

8

18

$2,460,611

$44,290,998

21

$2,493,000

$52,353,000

‑14.29%

‑1.30%

9

231

$964,913

$222,894,903

260

$897,223

$233,277,980

‑11.15%

7.54%

10

461

$679,677

$313,331,097

584

$697,105

$407,109,320

‑21.06%

‑2.50%

S.F.

2305

$1,230,031

$2,835,222,073

2717

$1,103,180

$2,997,341,071

‑15.16%

11.50%

D7&8

120

$4,155,783

$498,693,960

137

$3,511,538

$481,080,764

‑12.41%

18.35%

Others

2185

$1,069,349

$2,336,528,113

2580

$975,295

$2,516,260,307

‑15.31%

9.64%

 

 

CNDs

2007

2006

#change

$change

District

#sales

Avg. SP

Total sales $$

#sales

Avg. SP

Total sales $$

 

 

1

119

$912,675

$108,608,325

129

$820,132

$105,797,028

‑7.75%

11.28%

2

34

$735,850

$25,018,900

22

$740,788

$16,297,336

54.55%

‑0.67%

3

31

$508,952

$15,777,512

48

$539,237

$25,883,376

‑35.42%

‑5.62%

4

63

$555,033

$34,967,079

65

$558,667

$36,313,355

‑3.08%

‑0.65%

5

325

$952,144

$309,446,800

389

$846,539

$329,303,671

‑16.45%

12.47%

6

221

$777,788

$171,891,148

223

$707,782

$157,835,386

‑0.90%

9.89%

7

290

$1,290,612

$374,277,480

300

$1,163,516

$349,054,800

‑3.33%

10.92%

8

446

$939,028

$418,806,488

428

$895,630

$383,329,640

4.21%

4.85%

9

741

$804,784

$596,344,944

887

$782,462

$694,043,794

‑16.46%

2.85%

10

66

$467,921

$30,882,786

48

$539,504

$25,896,192

37.50%

‑13.27%

S.F.

2336

$892,989

$2,086,021,462

2539

$836,453

$2,123,754,578

‑8.00%

6.76%

D7&8

736

$1,077,560

$793,083,968

728

$1,006,023

$732,384,440

1.10%

7.11%

Others

1600

$808,086

$1,292,937,494

1811

$768,288

$1,391,370,138

‑11.65%

5.18%

 

David Parry
(415) 351 - 4611

dparry@mcguire.com

 

 

 

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