2015 was a banner year for San Francisco Real Estate. The 4th Quarter median house sales price, at $1,250,000 is up about 11% from the 4th Quarter of 2014. The median Days on Market (DOM) figure remained relatively unchanged at 19 days, versus 23 in 2014. Yearly sales volume came to $7.15B, a five percent increase versus the previous year.
National residential real estate, by and large, had a good year in 2015
Supply and demand were healthy in an environment rife with low interest rates and improved employment. The Federal Reserve finally increased short-term rates in December, and more increases are expected in 2016. Housing markets have shown a willingness to accept this. Save for a few expensive outliers where low inventory and high prices have become the norm, a balanced market is anticipated for much of the country for the foreseeable future. Improved inventory and affordability remain key factors for continued optimism.
New Listings were down 35.9 percent for single family homes and 20.9 percent for Condo/TIC/Coop properties. Pending Sales decreased 8.8 percent for single family homes and 20.7 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 12.0 percent to $1,203,500 for single family homes and 18.7 percent to $1,098,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 20.0 percent for single family units but was up 10.0 percent for Condo/TIC/Coop units.
Gross Domestic Product increased at an annual rate near 2.0 percent to close 2015, and that rate is expected to increase next year. Residential real estate is considered a healthy piece of the national economy. Contributing factors from within the industry include better lending standards and foreclosures falling back to more traditional levels. Declining unemployment, higher wages and low fuel prices have also conspired to improve personal budgets.