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San Francisco Luxury Real Estate Prices Growing But Still a Relative Bargain
Homes in San Francisco’s Sea Cliff neighborhood.
Last year brought robust growth to the San Francisco luxury real estate market, according to Christie’s International Real Estate’s just-released 2013 Luxury Defined report. But even with vigorous price and sales volume gains, our region remains a relative bargain when compared with other top international cities. Luxury property sales – which Christie’s defines as homes priced at more than $1 million – jumped a staggering 62 percent year over year in San Francisco, the largest gain of the 10 markets included in the report. And our region saw annual average price increases of 17.2 percent, the second-highest of the 10 regions. The Christie’s report notes that while tech-industry executives flush with cash from the booming economy helped drive price appreciation and sales in San Francisco, move-up buyers also played a crucial role. “We are seeing the return of the ‘move-up’ buyer, which means competition is fierce in the $1 (million) to $3 million-plus price range,” Pacific Union CEO Mark A. McLaughlin said. While growth in San Francisco’s luxury real estate market was impressive by any standard, the city still remains a more affordable place to buy a high-end home than other major global metro areas, including New York, Los Angeles, London, and Hong Kong. The Luxury Defined report includes data for homes above $1 million, but entry price points vary around the globe. For instance, while the entry price point for a luxury home in London was $6 million, the San Francisco benchmark came in at half that. Our region also has a lower entry point than both New York and Los Angeles, where $5 million was the baseline in 2013. In terms of price per square foot, San Francisco buyers could get more home for their money than those in all but two of the markets analyzed in the report. Click here to read more (Image: Flickr/Joe Ross)