June 8, 2016
San Francisco-based Paragon Real Estate issued its latest real estate report that detailed a number of significant changes that are showing up in the Bay Area economy. Those, in turn, are affecting the San Francisco residential market.
There was a plateauing in the buying season of spring 2016, after years of major increases and price appreciation. The combined house-condo median sales price ($1,280,000) was 5% higher year-over-year; however, that is a significant drop-off from the 23% jump experienced in 2015.
For the first five months of 2016, luxury condo sales dropped 25% compared to the same period a year ago. Paragon says it’s likely a result of increased competition from new, big, luxury-condo projects. Also, swelling global economic uncertainty affects the upper market segment more since a significant percentage of high end units are typically second or third homes.