In this report, we will define luxury homes in San Francisco as houses, condos, co-ops and TICs selling for $2,000,000 or more. Homes selling in this price range currently make up a little more than 10% of the SF residential market; those selling for $5,000,000 and above constitute about 1% of the city’s home sales.
In the past 12 months, 671 home sales of $2m+ above (414 houses, 220 condos, 23 co-ops, 14 TICs), and 67 sales of $5m+ (56 houses, 7 condos, 3 co-ops, 1 TIC) were reported to San Francisco MLS.
Not shown on the chart, but if we compared our recent market with the previous peak of the market prior to the 2008 crash, home sales of $2m+ have more than doubled: Part of this speaks to the surge in affluence in the Bay Area, and part of it is due to recent home price appreciation.
For buyers of larger houses, the greater St. Francis Wood-Forest Hill area offers comparably large and elegant homes, often on larger lots, at significantly lower dollar-per-square-foot prices. (See the following section below the next chart.) And many of the large, gracious, 3 to 5 bedroom Edwardians found in Inner/Central Richmond and Inner Sunset now sell for over $2m, but usually at lower prices than in the Lake Street and Cole Valley neighborhoods nearby.
Some homes are selling far beyond the average values seen here: A 15,000 square foot penthouse in South Beach is now on the market at $3000 per square foot, and a Pacific Heights penthouse of 5400 square feet reportedly just sold off-MLS for over $5000 per square foot, an all-time high in the city.
Part of the reason is proximity to where high-tech workers work in San Francisco and on the peninsula; another part is that many of the newly wealthy are relatively young and prefer a different neighborhood ambiance; and last but not least, the vast majority of new luxury condo construction is occurring in the quadrant of the city near to and southeast from Market Street. There is very little new housing construction occurring on the north side of the city.
Not included in the chart above, but over the 7-year period, home sales of $2m+ also increased in the Richmond/Lone Mountain neighborhoods from 1.5% to 3% of total luxury home sales, and from 0% to 2% of sales in Inner Sunset.
Last but not least, it should also be remembered that the more expensive the home, the smaller the pool of qualified, prospective buyers: Sometimes, it simply takes longer to find the right one for a particular property, especially if it’s a little outside of the norm in some way.
Of San Francisco’s home sales of $2m+ in Q1 2015, 43% were condos, co-ops and TICs. SF is the only Bay Area county where luxury condos and co-ops play a significant (and increasing) role in the market. Less than a handful sold in all the other counties combined.
For your convenience, below is a map of San Francisco neighborhoods and a breakdown of neighborhoods in each Realtor district.
All data from sources deemed reliable, but may contain errors and is subject to revision. Statistics are generalities and how they apply to any specific property is unknown without a tailored comparative market analysis. Outlier sales that would distort the statistics were deleted from the analysis when identified. All numbers should be considered approximate.
© 2015 Paragon Real Estate Group