Luxury homes in popular Pacific Heights, Marina, and Cow Hollow neighborhoods are moving with many homes receiving multiple offers or selling over the asking price.
It appears that the basic economics of demand and supply are causing San Francisco prices of single family homes and condominiums to rise. Employment prospects continue to improve, with San Francisco Unemployment down to 8.8% in March 2011, after being well over 10% during the height of the Great Recession. This is still well below California’s average 12% unemployment and the 14.7% high California reached in 1940 during the country’s Great Depression. Some areas in California have unemployment rates over 25%. Technology jobs seem to account for most of San Francisco’s job growth, as companies like Zynga and Twitter increasing their local workforces.
As the economy improves and company profits rise, employees may be less concerned about layoffs. A rising stock market that raises savings, may also be giving buyers a feeling of increased security.
After record office space downsizing by large corporate tenants, the San Francisco office market is rebounding with the expansion of technology companies. Planned expansions at Twitter and Zynga, as well as new start-ups are helping improve the city’s employment. There are predictions that the technology sector could expand to the peak levels we saw during the 2000 Internet Bubble.
Couple increasing demand with lower supply and you get upwards pressure on prices. Supply is down by almost 50%, with single family home inventory down from highs of over 4 months to 2.3 months in March 2011.
San Francisco’s Golden Gate Yacht Club is hosting the 34th Americas Cup match September 7-22, 2013 as Oracle Racing attempts to defend the coveted title against challenger Club Nautico di Roma’s Mascalzone Latino. While sailing may not be the best spectator sport, the proposed race course should be seen from San Francisco’s northern waterfront between the Golden Gate Bridge and the Bay Bridge. Many view homes in San Francisco’s Marina, Pacific Heights, Nob Hill, Russian Hill, Telegraph Hill and Downtown waterfront neighborhoods will benefit from having north facing views of the San Francisco Bay.
Want a 2 Bedroom condo with a view? There are 40 for sale with north bay views – ranging from $396,000 in the Financial District (710 sq. ft. – no parking but close to public transit) to $3,550,000 on Russian Hill (you can get 2,603 sq. ft. for $2,850,000 on Telegraph Hill). This one bedroom is a perfect Pied-a-Terre – check out the view!
If you want a single family home with a view, you have a choice of 14 homes ranging in price from $1,295,000 (c.1884 Telegraph Hill) to $45,000,000 (Pacific Heights). Expect to pay over $900 a square foot. The Telegraph Hill remodeled cottage is part of San Francisco’s early history of 19th century homes that survived the 1906 earthquake & fire. The home is surrounded by the lush foliage of the Filbert Steps and Grace Marchant Garden, home to and the wild parrots of Telegraph Hill.
Real Estate Broker & MBA
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