San Francisco luxury condo sales leaped in the second quarter, hitting their highest number in a single month in June, according to a report Tuesday from Paragon Real Estate Group.
Condo sales for homes priced at $1.85 million or more peaked in June with more than 50 transactions, according to the report. Sales of luxury single-family houses, defined as $3 million or more, have yet to surpass the record month set in October.
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Paragon tracks only sales logged in the multiple listing service, meaning new development transactions are not part of the figures.
San Francisco’s luxury market was burning hot during the housing market recovery between 2012 and 2015. But a confluence of global and local economic and political events—from a drop in start-up IPOs to wealth constraints in China—cooled the market for high-end homes in the Bay Area starting in 2016.
"There has been nothing approximating a crash and, all in all, demand held up quite well considering all the circumstances at play," wrote Paragon’s chief market analyst Patrick Carlisle in a breakout report on the luxury market.
Half of the luxury condos sold between March and May, the most recent available data, went above the asking price, according to Paragon. For luxury single-family houses, 54% sold for more than the owner was asking.
Like its East Coast peer Manhattan, San Francisco’s more affordable market is on fire. Four out of five houses priced under $3 million sold above asking price—meaning bidding wars and buyer competition.
"That is feverish," Mr. Carlisle wrote.
Despite the record number of condo sales in the second quarter, there are pockets in the city where condo resales have plunged due to a flood of new development.
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There’s been a dramatic drop, nearly 50% year-over-year, in luxury condo sales reported to the multiple listing service in greater South Beach, South of Market and the Yerba Buena district.
"This is the area where large, very expensive, high-rise projects continue to come on market, and, to some degree, they may be cannibalizing MLS sales in the resale market," Mr. Carlisle wrote.
In the meantime, activity has shifted toward highly affluent neighborhoods in the north of the city, like Pacific Heights and Russian Hill.