June 26, 2013
This analysis shows trends in prices and unit sales volume for Tenancy-in-Common (TIC) properties in San Francisco since the previous peak in prices in 2006-2007 and today.
After the 2008 market crash, sales volume of TICs dropped dramatically, mostly due to changes in the financing environment. Sale volume has since picked up, but is still far below the levels of 2007. So far in 2013, median and average sales prices have exceeded previous peak values.
As of this writing, new condo conversion regulations, which may affect the TIC market segment, have been passed by the San Francisco Board of Supervisors, but not yet signed by the mayor. If not vetoed by the mayor, they would apparently go into effect in mid-July, however there is also a codicil in these new regulations for a so-called “poison pill” should they be challenged in a lawsuit. More clarity will hopefully be forthcoming soon.
You can find articles written by experienced attorneys on this subject here:
Goldstein Gellman Articles
& Sirkin & Associates Articles
This table shows sales volume, median sales price and average sales price by year. For the price statistics, the median price is usually considered more statistically reliable, because averages can be easily distorted by a small number of high-price sales—and TICs have now sold for prices in excess of $2,000,000. Still, both measurements have followed similar trajectories over the past 7 years.
And this chart tracks unit sales volume and median sales price trends. Note that the unit sales entered for 2013 YTD are a projection of annual sales volume for the entire year based on current rates of sale.
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. All numbers should be considered approximate.
© 2013 Paragon Real Estate Group