That sound you hear may be some air finally escaping from the inflated San Francisco real estate market.
Home prices in the San Francisco Bay Area fell by 1.8% year-over-year in March, the first such drop in four years, according to Redfin , a Seattle-based real estate brokerage. “For years, San Francisco has been one of — if not the most — competitive markets in the country,” said Redfin chief economist Nela Richardson. “Now we are seeing this white-hot market start to cool and contract,” she said. Richardson noted that the share of Redfin properties facing multiple offers by buyers dropped to 77% in March from 94% compared to a year ago, Richardson added. “This suggests that the price drop is not about inventory, it’s about buyers fed up with high Bay Area prices and crazy competition,” she said.
In the city of San Francisco, the median value of homes has skyrocketed, from $670,000 at the beginning of 2012 to $1.12 million in April , a gain of more than 67%, according to Zillow.com, which puts the gain in the past year alone at 11%, though down from its year-over-year estimate of 14% in February. Last fall, a derelict two-bedroom, one-bath earthquake shack, built in the aftermath of the 1906 earthquake, sold for more than $400,000, 17% above its asking price. In addition, a similar fixer-upper along San Francisco’s famed Great Highway overlooking the Pacific Ocean, within walking distance of the city zoo and Golden Gate Park, sold for $1.2 million.
At Gay Realty Watch, we look for news to share with you about the gay real estate market – both lgbt real estate news and news specific to gay and lesbian real estate meccas.