In May, San Francisco’s property markets continued the feverish recovery that began this spring, with median sales prices for both single-family homes and condos hitting new peaks, according to a report released Tuesday.
The median sales price for houses in the West Coast city soared to $1.5 million in May, the highest ever. The condo market also reached a record median sales price, at $1.2 million, surpassing the previous record of $1.18 million, according to the monthly report by Paragon Real Estate.
The brokerage’s previous reports indicated that San Francisco’s property market had been picking up steam so far this year. Property markets started to cool off in the fall of 2015 and remained soft throughout 2016, according to the report.
Last month, the luxury segment saw particularly strong gains. Sales of luxury condos, defined as the top 10% of the market or having an entry price point of $1.85 million, reached a new peak since March 2015. There were over 40 luxury condo apartment closings in May, accounting for almost one-third of the active listings during the same month.
In terms of submarkets, the most active luxury hub switched back from South Beach/SoMa/ Yerba Buena district to Pacific Heights and Russian Hill, the report said. The South Beach/SoMa/Yerba Buena districts, which previously benefited from surging demand from foreign buyers, was hit by political uncertainties brought about by Trump presidency and structural issues (sinking and tilting) at the Millennium Tower in the neighborhood.
Sales of luxury houses, which have a threshold of $3 million, still remained in the mid-20s, similar to the volume seen in the previous two months, according to the report.
The strong market conditions might be largely seasonal, and historically, sales in San Francisco tend to drop off in the winter months, the report noted.
— Mansion Global (@MansionGlobal) May 20, 2017
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