The San Francisco house market is on solid ground going into 2024, despite higher interest rates. No surprise, as buyers tend to put single-family homes at the top of their wish lists.
132 homes sold in the first six weeks of the year, which is just below the 136 year-over-year (YOY) total. However, the $1,528,000 median price was up from the YOY median of $1,407,000.
More than half of all homes in this timeframe closed for more than asking, with 21 houses changing hands for 20%-54% over list price. But it’s worth noting that the average citywide overbid was only 2%.
Voracious overbidding in the western neighborhoods isn’t really news at this point. The repetitious strategy of listing at $1.1M to get $1.5M or $1.6M shouldn’t be a shock to any buyers who have been looking in the Sunset, for example. The average price for a remodeled, three-bedroom Central Sunset house is $1,643,000, so buyers qualified to pay much less than that may want to avoid those offer situations.
If you’re a single-family home buyer with a budget ceiling of $1.5M, your best bets this year be Bayview, Bernal Heights, Central Richmond, Central/Outer Sunset, Crocker Amazon, Ingleside, Merced Heights, Excelsior, Visitacion Valley, Outer Mission, Parkside/Outer Parkside, Outer Richmond, Silver Terrace, Portola and Sunnyside.
Buyers in the $3M+ range haven’t been quite as busy. Only 22 homes sold in this range, with most changing hands for under the list price. Sold inventory in this price range was largely centered in Pacific Heights, Russian Hill, the Marina and Noe Valley.
There are currently 227 houses on the market at a median list price of $1,688,000, and 140 are in contract for a $1,421,000 median price.
Pro Tips:
Buyers: Make sure you stay on top of your preapproval as interest rates fluctuate. You don’t want to commit to a purchase, get in contract and then find that you can’t afford the house.
Sellers: Houses may be hot, but not every one is a multiple-offer magnet. Make sure you have a realistic value expectation—and that your home is presented as well or better than the latest comparable sales.