San Francisco Real Estate Market Update

By DANIEL BORNSTEIN, ESQ.

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In an earlier, optimistic post, we mentioned that with few exceptions, the housing market has made a significant comeback nationwide, with the Bay Area being singled out as one of the greatest beneficiaries of rebounding home prices.

 

On the flip side, the number of homes and condos that traded hands in San Francisco dipped 7 percent.

 

 

It’s interesting to study the market forces at play.

 

In San Francisco, both sales volume and median prices are down, but the numbers are goosed. There has been an influx of newly constructed condos. Since condos are generally cheaper than single family homes, the glut of condo sales has drove down San Francisco’s median price of total units sold.

 

Outside of San Francisco, we observe lower sales volume but rising prices, suggesting a contracted inventory (supply) with higher or equal demand. Since the real estate market outside of San Francisco is comprised of mostly single family homes, there is no condo sale dynamic that has depressed the median price.

 

And so while on paper, San Francisco housing prices are on the downturn, homeowners should not be discouraged. The number of Single Family Homes are shrinking, which is creating upward pressure on the price. The new condo construction certainly has impacted the prices for condos, but it is not effecting Single Family Home prices – to the contrary, they are on the uptick.

 

Of course, all things are always changing all the time, but you can count on Bornstein Law to keep you ahead of the curve.

As the founding attorney of Bornstein Law, Broker of Record for Bay Property Group and expert witness, Daniel Bornstein is a foremost and well-respected expert in landlord-tenant disputes and other property management issues with over 23 years of experience in handling real estate and civil litigation related disputes.

CONTACT BORNSTEIN LAW
415 409 7611