San Francisco, CA. January 26, 2012. Both the weather and home sales were unseasonably warm throughout the City of San Francisco in the fourth quarter of 2011 as investors with cash continued to snap up entry-level homes as soon as they hit the market and buyers of luxury properties found sellers willing to negotiate in exchange for an all-cash offer, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.
Citywide, 646 existing, single-family detached homes changed hands in the fourth quarter, up 9 percent from 593 homes sold in the third quarter and an increase of 5 percent from 615 homes sold during the final quarter of 2010. Home sales figures were broadly higher on a year-over-year basis in five of The City’s 10 neighborhoods. Districts 8 (Nob Hill/Russian Hill/Telegraph Hill) and 10 (Bayview/Excelsior/Visitacion Valley) led the way with 20 percent increases in sales volume on an annualized basis, followed by Districts 4 (Diamond Heights/Mt. Davidson/West Portal) and 7 (Marina/Pacific Heights), which recorded 19 percent year-over-year increases, and District 3 (Stonestown/Ingleside/Oceanview) with a 17 percent annualized spike in the number of home sales.
Sales figures might have been even higher if not for a continued tightening of the inventory of homes available for purchase, as measured by the number of days the average home was on the market before sale.
Citywide, homes were on the market an average of 47 days before receiving a contracted offer in the fourth quarter, down from 53 days in both the third and prior-year periods. The number of days on the market ranged from a low of 36 days in District 1 (Richmond) to 70 days in District 8 as purchases continued to be completed at a rapid pace. Citywide, the median sales price rose from $833,372 in the third quarter to $881,139 in the fourth quarter – a 6 percent increase largely driven by a spike in sales of more expensive homes and a tighter inventory of lower-priced REO and short sale bargains. Four neighborhoods reported both quarter-over-quarter and year-over-year increases in the median sales price: Districts 3, 5 (Glen Park/Haight Ashbury/Noe Valley), 6 (Hayes Valley/Western Addition) and 8. Despite this show of strength, the Citywide median price in the fourth quarter was 4 percent lower than in the final quarter of 2010, when it was $915,177.
Looking ahead, the lack of housing inventory in every price range may open a window of opportunity for some homeowners who have been waiting for signs of improvement in the San Francisco detached-home market before offering their home for sale. According to James Caldwell, Better Homes and Gardens Mason-McDuffie manager of the San Francisco-Cathedral Hill office, “An early start to the spring homebuying season and strong interest from homebuyers who have been sitting on the sidelines bodes well for sellers with ready-to-occupy homes in high-demand neighborhoods.”
Fourth Quarter 2011 Housing Market Survey – San Francisco
San Francisco County
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
Single-Family Detached
Homes
646
615
5
47
53
-6
$881,139
$915,177
-4
Fourth Quarter 2011 Housing Market Survey – San Francisco
Single-Family Detached Homes
Area
Homes
Sold
Q4/11
Homes
Sold
Q4/10
%
Change
Avg.
DOM*
Q4/11
Avg.
DOM
Q4/10
Change
11/10
(Days)
Median
Price
Q4/11
Median
Price
Q4/10
%
Change
District 1
47
61
-23
36
52
-16
$889,000
$1,000,000
-11
District 2
110
107
3
40
34
6
$633,500
$680,000
-7
District 3
48
41
17
52
56
-4
$545,000
$501,000
9
District 4
83
70
19
46
43
3
$790,000
$845,500
-7
District 5
92
92
0
43
38
5
$1,412,500
$1,360,000
4
District 6
7
10
-30
43
58
-15
$1,765,000
$1,287,500
37
District 7
32
27
19
45
45
0
$2,987,500
$3,150,000
-5
District 8
6
5
20
70
115
-45
$2,405,000
$1,200,000
100
District 9
58
66
-12
41
41
0
$723,500
$793,500
-9
District 10
163
136
20
57
46
11
$440,000
$499,500
-12
San Francisco District Guide:
District 1 - Central Richmond, Inner Richmond, Jordan Park/Laurel Heights, Lake, Outer Richmond, Sea Cliff, Lone Mountain.
District 2 - Golden Gate Heights, Outer Parkside, Outer Sunset, Parkside, Central Sunset, Inner Sunset, Inner Parkside.
District 3 - Lake Shore, Merced Heights, Pine Lake Park, Stonestown, Lakeside, Merced Manor, Ingleside Heights, Ingleside, Oceanview.
District 4 - Balboa Terrace, Diamond Heights, Forest Hill, Forest Knolls, Ingleside Terrace, Midtown Terrace, St. Francis Wood, Miraloma Park, Forest Hill Extension, Sherwood Forest, Monterey Heights, Mount
Davidson Manor, Westwood Highlands, Westwood Park, Sunnyside, West Portal.
District 5 - Glen Park, Haight Ashbury, Noe Valley, Twin Peaks, Parnassus/Ashbury Heights, Buena Vista Park, Corona Heights, Clarendon Heights, Duboce Triangle, Eureka Valley/Dolores Heights, Mission Dolores.
District 6 - Anza Vista, Hayes Valley, Lower Pacific Heights, Western Addition, Alamo Square, North Panhandle.
District 7 - Marina, Pacific Heights, Presidio Heights, Cow Hollow.
District 8 - Downtown, Financial District, Nob Hill, North Beach, Russian Hill, Van Ness/Civic Center, Telegraph Hill, North Waterfront, Tenderloin.
District 9 - Bernal Heights, Inner Mission, Mission Bay, Potrero Hill, South of Market, South Beach, Central Waterfront.
District 10 - Bayview, Crocker Amazon, Excelsior, Outer Mission, Visitacion Valley, Portola, Silver Terrace, Mission Terrace, Hunters Point, Bayview Heights.
* Days on market is the number of days a property was listed on the market until it went under contract at its final listing price. This may not reflect previous listings.
**The median home price for the entire county is the mean of median home prices of districts within San Francisco County.
Data are sourced from multiple listing services and are deemed reliable but not guaranteed. All percentages rounded to nearest whole number.
Produced by the Research Division at Better Homes and Gardens Mason-McDuffie Real Estate.
About Better Homes and Gardens Mason-McDuffie Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 17th largest real estate services firm in the nation (RIS Media), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 7,790 transactions in 2011, generating $2.94 billion in sales. Better Homes and Gardens Mason-McDuffie Real Estate is independently owned and operated and includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill. The organization is comprised of more than 1,400 sales professionals in 33 offices. For more information, go to www.bhghome.com.