Blue Green Line in Header
 


View other regions: South Bay |  East Bay |  Los Angeles |  San Diego |  Inland Empire


Beacon Economics provides customized five-year data forecasts for variables including:
    Taxable Sales
    Home Prices & Sales
    Personal Income
    Unemployment

Learn more

---------------------------------------------
CONTACT: Sherif Hanna
SUBSCRIBE
Receive the San Francisco
Regional Outlook by email
 

San Francisco Home Prices Surging... Though Price Growth Will Cool

The real estate market in the San Francisco Metropolitan Division1 (MD) has experienced spectacular price appreciation over the last year. In 2013, the median price for an existing home in the San Francisco MD increased by 18% over 2012 prices, and is now just 2% below where it was at its pre-recession peak. And despite concern that this strong and rapid appreciation is indicative of another housing bubble, Beacon Economics does not hold that view.

Instead, supply and demand fundamentals have been a prime factor in the area’s recent price appreciation. Like many regions across the state, the San Francisco MD faces a shortage of homes for sales. According to data from the California Association of Realtors’ there is under three and a half months worth of home supply currently on the market – meaning the current supply of homes on the market would be exhausted in under three and a half months at the current pace of sales. This is down from four months’ supply recorded in February 2013.

The number of distressed residential units on the market is also quickly diminishing, further tightening supply. In the fourth quarter of 2013 the number of defaults in the San Francisco MD was down 50% from one year prior, and foreclosures were down 60% over the same period. Not only does this make for a smaller inventory of homes on the market, but it also puts upward pressure on prices as there are...



 

... To continue reading this current edition, please Login or Create an Account to view the full content. It's simple and we will never share your information without your permission.

 
No Nonsense Economics blog feature image
Client Quotes

"Beacon Economics has become an invaluable resource to the Los Angeles Area Chamber of Commerce, providing us with data and research that informs our efforts to rebuild the region’s economy."
Gary Toebben, President & CEO, Los Angeles Area Chamber of Commerce

"Beacon Economics has substantially increased economic literacy here in Sonoma County."
Ben Stone, Director, Sonoma County Economic Development Board

"The professional and technically skilled staff at Beacon Economics delivered an excellent product that has been key to our District’s long term planning and fiscal health."
Dave Collins, Assistant General Manager, Finance and Management Services, East Bay Regional Park District