San Francisco Housing Update February 2018

There is no secret that the Housing Market recovery which started in 2011 – was started in San Francisco and only then spread around the country.

So we are in approx 7 years growth period right now with practically no inventory, huge demand, a lot of high paying job, historically cheap credit and the influx of foreign buyers throwing all-cash into the San Francisco and Silicon Valley market.

So with the average price for single family home around $1,800,000 (in San Francisco) you need to put down payment (20%) of $360,000 (and show some savings as your ability to pay mortgage for the next 6 month)…

With Interest Rate around 4.250% – you are looking into Monthly Payment $8,959 with the Monthly Payment Breakdown

Total $8,959/month
Principal and Interest $7,084/month
Monthly Tax $1,800/month
Monthly Insurance $75/month

So we are talking about $110,000 per year in housing payments.
With the rumored multiple interest hikes which are predicted for 2018 – your purchase power is decreasing significantly.
On another hand – as Buyer’s purchase Power decreases with the interst hikes – the Seller’s ability to sell for TOP $$$ is decreasing as well.

Right now is a good time to BUY and/or SELL.

With the huge amount of the homeowners in SF and around sitting on the equity in their properties (and many of them are sitting on equities much much bigger than $1,000,000)
and refusing to sell because they have to pay capital gain taxes (and in California they are the highest in the whole Country) with 30%-35% total (15-20% Federal and 13.3% California)…

You will pay those capital gains anyway when you decide to sell. The issue here is – 30% or 35% paid right now or that same percentage paid when market shifts?

You always have a lot of options…

Under Section 121 of the Internal Revenue Code (“IRC”), when a taxpayer sells a principal residence, they are entitled to exclude $250,000 of gain ($500,000 for married taxpayers) from taxation. Under Section 1031 of the IRC, a taxpayer may exchange investment property for other investment property
and defer capital gains on the sale. Under Revenue Procedure 2005-14, when a property is used for both purposes – i.e. as a principal residence and for investment –
a taxpayer may take advantage of both the 121 capital gain exclusion and the 1031 capital gain deferral.

As old saying “if it gets ugly – it could get really ugly’ – the prices in San Francisco are becoming crazy high and less affordable.

There are currently 507 active homes for sale here in the San Francisco (as of February 1st) vs 251 the month before…

In the month of January there were a total of 248 home sales vs 392 the month before.

The average sales price for January of 2018 was $1,810,787 (in December was $1,620,754).
The average sales price for January of 2018 was $1,810,787 (in January of 2017 was $1,512,651).

Average days on market in San Francisco was 48 for the month of January (38 days for the month of December).

Average property in SF as of January 2018
Bedrooms 2
Bathrooms 1.64
Square Feet 2,129
List Price $1,755,155
Selling Price $1,810,787
DOM 48

Average sale price for Single Family House in San Francisco in January of 2018 – $1,788,506 (in December was $1,964,242).
Average sale price for CondoCoopTICLoft in San Francisco in January of 2018 – $1,341,840 (in December was $1,278,346).
Average sale price for 2-4 Units in San Francisco in January of 2018 – $2,468,083 (in December was $1,990,350).
Average sale price for 5+ units in San Francisco in January of 2018 – $5,322,538 (in December was $3,432,655).

Inventory as of today – February 1st – 507 properties for sale in San Francisco.
Single-Family Homes 131
CondoCoopTICLoft 287
2-4 Units 73
5+ units 16
total – 507.

The market has remained steady for some time now and continues to be a Sellers market…
There is currently about 2 month worth of inventory, meaning if there was not another home listed, it would take about TWO month for all the current homes on the market to sell…
6 months of inventory is when it becomes a buyers market….
If you are thinking of selling anytime in the near future, now is the time to do so…
the good news for Home Sellers is there is a lot of demand for homes and now is a great time to sell if you are looking to get top dollar…
For Buyers, yes there are less homes available to sell, however interest rates are as low as we have ever seen so you are able to get more house for your money currently than you have been able to in the past and probably than we will be able to in the future…
I will continue to keep you updated and if you need anything please feel free to call or text me at 415-385-8949 or email me at …. anytime

Sold in San Francisco

Sold in January 2018 248

Sold in December 2017 392
Sold in November 2017 547
Sold in October 2017 538
Sold in September 2017 378
Sold in August 2017 440
Sold in July 2017 467
Sold in June 2017 562
Sold in May 2017 502
Sold in April 2017 452
Sold in March 2017 485
Sold in February 2017 287
Sold in January 2017 271

2018
All properties for sale in SF on February 1st 2018 – 507

2017
All properties for sale in SF on January 3rd 2017 – 320
All properties for sale in SF on February 5th 2017 – 561
All properties for sale in SF on March 5th 2017 – 650
All properties for sale in SF on April 5th 2017 – 733
All properties for sale in SF on May 5th 2017 – 792
All properties for sale in SF on June 3rd 2017 – 814
All properties for sale in SF on July 5th 2017 – 652
All properties for sale in SF on August 3rd 2017 – 667
All properties for sale in SF on September 5st 2017 – 614
All properties for sale in SF on October 3rd 2017 – 895
All properties for sale in SF on November 1st 2017 – 819
All properties for sale in SF on December 4th 2017 – 623
All properties for sale in SF on January 1st 2017 – 251

Out of 84 Single Family Houses sold in San Francisco in January of 2018, –
20 sold below asking price,
6 – for asking price
and 58 sold for over asking price.

9 for over $300,000,
4 for over $400,000,
1 for over $500,000,
2 for over than $600,000,
1 for over than $1,540,000..

2739 Broderick St, San Francisco CA 94123-3803
List price 4,500,000
Sold Price 6,040,000
Diff 1,540,000
List Date 11/17/2017
Sold Date 1/4/2018
Address 2739 Broderick St
neighborhood 7 – Cow Hollow
Beds 5
Bath 3.5
SqFt 3730
Age 1915
Lot 2746

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