The high-end home market in San Francisco may be starting to cool, according to a new report from Paragon Real Estate Group, which is based in the city. While low- and mid-priced homes in San Francisco remain in what Paragon defines as "seller’s market" territory, the relationship between buyers and sellers in the luxury market has started to change. The report points to several explanations for this shift: • The drop in U.S. equity markets at the end of the summer may have scared some wealthy homeowners into putting their estates on the market. • Sky-high asking prices in San Francisco may have pushed some property seekers to explore housing options outside of the city. • Lastly, the supply of newly built luxury condominiums in the city is growing, leaving prospective buyers with more housing options. The report emphasizes that San Francisco’s luxury market hasn’t crashed, noting that a number of high-end homes continue to sell rapidly for high-prices. (The median sales price for a single-family home in October was $1.3 million. It was $1.1 million for a condominium.) However, the number of luxury homes on the market hit a new high in October, suggesting that the market has cooled, at least temporarily.
The number of luxury listings in San Francisco hit a new high in October.
PARAGON REAL ESTATE GROUPRead the full report. Write to Gina Faridniya at gina.faridniya@dowjones.com