May 2013: This is just a quick snapshot of the San Francisco luxury home market in April 2013 using 5 statistical charts from Broker Metrics. For a more comprehensive overview, see our San Francisco Luxury Home Market Report (under Market Dynamics/ San Francisco Real Estate Market Reports). In this analysis, luxury homes are simply defined as those selling for $1,500,000 and above: it will vary by neighborhood as to whether a house, condo or TIC in that price range would subjectively qualify as "luxury" or not.
In April of 2012, the percentage of total SF home sales selling in this price range was 10%. In April of 2013, that percentage made a huge jump to 18% of sales.
Broker Metrics charts can be a little hard to decipher: for greater legibility, you may wish to adjust your screen view to Zoom 125%.
Luxury Homes for Sale:
Unlike the general inventory of home listings (which is much lower year over year), the number of SF homes listed and actively for sale for $1.5m and above in April -- at 237 listings -- though well below last autumn’s levels, was about 10% higher than it was last year, and climbing. Part of this is simply the appreciation of home prices we've seen over the past year: if prices are up 20% or more, then a fair number of houses that were listing and selling under $1.5m twelve months ago, will now be over that price threshold.
Luxury Homes Sold:
The number of SF Homes sold for $1.5m and above in April -- 90 sales -- was 80% higher than in April of 2012. Both March and April 2013 had the highest number of sales in years.
Months Supply of Inventory (MSI):
The Months Supply of Inventory for SF Homes of $1.5m and above was less than half of what it was one year ago. At 1.5 months in April, it was the lowest MSI reading in years, by a substantial margin. The lower the MSI, the hotter the market.
The Percentage of Listings Under Contract (Accepting Offers):
The Percentage of SF Listings of $1.5m and above that accepted offers in April, at 38%, was the highest in years and 73% above the percentage in April 2012. The higher the percentage, the hotter the market.
Average Dollar per Square Foot:
Average dollar per square foot values for SF Homes selling for $1.5m and above jumped from $714 in April 2012 to $940 in April 2013. Monthly average dollar per square foot values for such a broad basket of different properties -- $1.5m to $30m scattered throughout the city -- should be taken with a big grain of salt, still the progression of higher values in very clear and dramatic. It’s a natural consequence of the level of demand seen in the preceding charts.
All data herein is from sources deemed reliable, but may contain errors and is subject to revision.