Record-Breaking Price Gains in San Francisco As Median Home Price Reaches $1.6 Million
The best indication of what’s going to happen in the future, is what’s happened in the past. Seattle (Silicon Forest) is following the same urbanization and market trends as San Francisco and the Bay Area (Silicon Valley), albeit it's taking shape much more quickly; approximately 1,100 people having been to Seattle every week since 2010. However, Seattle is still relatively inexpensive to other west coast cities.
According to an article recently published by Bloomberg, home prices in San Francisco have continued to soar in the first few months of 2018, as the median sale price reached $1.6 million in the first quarter, “an almost 24 percent jump from a year earlier.” That figure tops the previous high, which was established “in the final three months of last year by [a staggering] $100,000.” To be sure, the latest S&P/Case-Shiller Home Price Index reveals rapid San Francisco home price growth, as the city’s year over year price gains were up 10.2 percent from January 2017 to January 2018.
To gain insight regarding the frenzied homebuying climate, look at a recent sale in Sunnyvale: a modest home that Curbed San Francisco reports sold for $2 million in just two days. The circa 1950s, two bedroom, one bathroom home, measuring just 848 square feet, was listed at $1.45 million. It went for $2 million cash for less than “the length of a long weekend.” The property broke a Sunnyvale record for price per square foot at $2,358, and though Curbed notes that the home is “perfectly pretty,” it’s also “an unlikely record breaker.” As the article reports, the sale has much more to do with the “bizarrely frantic scale of demand in Silicon Valley these days” than with the home itself.