The real estate numbers for the first quarter of 2016 are in and we are seeing that different market segments in the city began to trend in significantly different directions. Below is a quick update on how the market is trending:
- Houses below $2 million are still often selling in a frenzy of bidding (Sunset, Parkside, Mission Terrace, Sunnyside) homes especially are on fire).
- Houses over $2 million are cooling a little.
- Condos under $1.5 million are definitely cooling (probably most in SoMa and South Beach with competition from new projects).
- Condos over $1.5 million are cooling down very significantly (especially in SoMa, Yerba Buena and South Beach, with the growing and upcoming competition from new ultra-luxury projects). In South Beach and Yerba Buena, the average sales price to list price percentage, is about 9 to 10% below asking price for Q1 2016. Overall, condos $1.5 million and above are down to zero above asking.
- Expired condo listings are the highest in 4 years: a good number of condo listings aren’t selling.
- Percentage of listings selling over asking are up for houses year over year, and houses under $2 million remain at an astonishingly high percentage. Condo percentages selling over asking are much lower, and declining year over year.
These are the trends showing up now, but keep in mind that one quarter’s data is not definitive.