The frenzied overbids that characterized neighborhood real estate in the first half of 2014 began to subside in the second half — one sign that the San Francisco housing market could move toward a more balanced state in the coming year.
Bidding wars in Lower Pacific Heights, Pacific Heights, Cow Hollow and Presidio Heights reached their zenith in May, when single-family home buyers paid an average of nearly 12 percent more than the original list price. By November competition had slowed a bit and buyers were paying about
1 percent below original list price.
More sellers reduced home prices in the second half of the year, which likely helped to increase the number of deals that closed. In the first two quarters, 45 single-family homes in the neighborhood changed hands. Between July 1 and the end of November, 52 homes had already sold, with a month still remaining in the year.
Looking ahead to 2015, expect more home price appreciation, though perhaps at a slower rate than during the past few years. Inventory is historically tight in January, so buyers will continue to have limited choices. Savvy sellers, however, might take advantage of this window and put their homes on the market.
Patrick Barber is president of Pacific Union.
Filed under: Real Estate