With demand as strong as ever, San Francisco saw its average home sales price of $1.761 million up 4 percent from Q1 2016, and at its fourth-highest peak in market history. Supply remained tight, with only 381 homes selling this quarter. While this sales volume figure was low from a historical standpoint, it was still a 9 percent gain year-over-year. This slight uptick combined with more sellers entering the fray after holding out in Q4 2016 should translate to a wealth of opportunities for prospective buyers with cash in hand as we enter the busy spring season. The average 35 DOM this quarter was very much in line with typical San Francisco sales behavior.
AVERAGE SALES PRICE BY NEIGHBORHOOD – THE TOP 10
As is typical in first quarter of each year, it was difficult gauge San Francisco’s granular area gains due to a dearth of sales. That said, the city’s North side remained extremely strong, with activity including three sales at over $10 million in Presidio Heights and a handful sales at $5 million or above across several parts of the city.
SALES PRICE CHANGE
Sellers aggressively tested the market’s ceiling this quarter. For some, the risk played out quite favorably, as those who required no price change netted 14 percent on top of initial list price—a Bay Area high for the quarter. The flipside of the equation was that those who tested the market ended up seeing an 11 percent drop on initial list price—the second-largest downward deviation among all seven counties.