July 18, 2017 Comments Off on Supply Surge Cooling MF Rents in San Francisco Views: 994 Bay Area

Supply Surge Cooling MF Rents in San Francisco

San Francisco hit new highs in quarterly median sales prices for both condos and houses in Q2 2017, according to the latest report from Paragon Real Estate Group. Luxury condo sales hit a new monthly high in June 2017. Both luxury houses and luxury condos hit new quarterly peaks in number of sales, with condos achieving substantial gains.

The house market has been appreciating much more quickly than condos over recent years. The Q2 median house sales price, at $1.45 million, was $100,000 above the previous quarterly peak.

San Francisco rents have fallen 8% on a year-over-year basis, but remain the highest in the nation. Declining rents is one factor in the cooling of the apartment building market in the city, according to Paragon’s report.

But the report notes other factors are contributing to declining rents, including a surge in supply of more than 8,000 new rental units delivered in the past five years, and at least 10,000 more expected to hit the market in the next five.

Read more at Paragon Real Estate

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