From Pacific Union International Chief Economist Selma Hepp, - April 14, 2017
San Francisco's housing market continued the balancing act between buyers and sellers in the first quarter. While demand remained strong, a severe lack of homes priced below $2 million kept a lid on sales growth in that price segment. On the other hand, sales of homes priced above $2 million saw a more favorable quarter when compared with the same period last year.
Buyers remained even-keeled and less willing to enter bidding wars, although entry-level condos frequently sold for more than asking price. High-end buyers were interested but took longer to commit to a purchase. Consequently, home prices increased slightly at lower price points and remained flat at higher-priced segments. After some buildup in condominium inventory last year, the first quarter began with slightly fewer listings when compared with one year ago.
Looking Forward: Steady job and income growth should continue to fuel demand for San Francisco real estate. And with interest rates still historically low, future anticipation of increases may pull in some homebuyers who have been sitting on the fence.
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