San Francisco is on fire. Don’t worry – that’s not literal, of course. Rather, the real estate market is red-hot, as in number four on the Wall Street Journal’s top five hottest markets.
How has this recovery come to pack so much punch? Well, there’s the perennial – the fact that San Francisco has been – and will likely always be – an incredibly desirable area in which to live. That means that buyers are flocking to the city rather than the suburbs, which in turn means that inventory is low and only getting lower. (How loooow can you go, you might ask. Well, if you live in San Francisco, inventory can get pretty loooow indeed.)
The luxury market is feeling the flush. It’s estimated that the average price of a high-end home in San Francisco is up 15 percent, hitting just over $3.75 million. Some of the city’s swankiest properties are being purchased by high-tech workers seeking to live in San Francisco while commuting to Silicon Valley. In fact, these tech workers are being credited with driving the city’s recovery from the recession.
In the luxury market, inventory is at critical lows, particularly over the $3 million mark. Prices also seem to be neighborhood-driven, which is a given in our city.
New construction is booming in San Francisco, particularly in the denser areas with more public transportation options. The past few years have given us planning and rezoning, and those efforts are now bearing fruit. This should also help inventory levels, but exactly how much remains to be seen.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com