The median home price for a single-family home in San Francisco reached $1 million in April, according to the San Francisco Association of Realtors. This is a gain of nearly 32% from the $760,000 median in April 2012.
“Shrinking inventory combined with low interest rates and motivated buyers has resulted in historically high sales prices, said Christine Dwiggins, who is president of the Realtor group.
The supply of inventory is down to just 1.1 months, where normal is considered five to seven months. Single-family homes in the city were on the market an average of 28 days in April, compared with 49 days one year earlier.
San Francisco is considered to be the least affordable market in the nation for housing.
DataQuick has a slightly lower median price for the San Francisco municipality. Its data show that San Francisco had an $815,000 median price in April, up 16% from $700,000 one year prior.
The median price paid in the nine-county Bay Area rose to $510,000 in April up 17% from $436,000 in March, and up 31% from $390,000 in April a year ago.
“There’s somewhat of a perfect storm here, statistically speaking. The pent-up demand, the economy, interest rates, investor buying. Everything is in alignment right now, but that won’t always be the case. Also, it’s easier to regain lost ground. A major element to watch for between now and fall is how many homes are put on the market at these higher price points,” said John Walsh, DataQuick president.
Mortgages above the old conforming limit of $417,000 accounted for 48.1% of the region’s purchase lending, up from a revised 43.2% in March. Last month’s jumbo share was the highest since August 2007 when it was 58.6%. All-cash transactions accounted for 28% of the purchase activity.