San Francisco Real Estate - Residential

First Republic publishes its first quarter report for luxury real estate San Francisco

In the San Francisco Bay Area, there was no change in values from the fourth quarter of 2006 and values were virtually unchanged from the first quarter a year ago. Agents said luxury home values in the city of San Francisco, along the Peninsula and in Marin County were increasing. There appears to be pent-up demand in these markets, reflected by brisk sales activity for luxury homes in San Francisco and the fact that the median-priced home in Marin County topped $1 million in April for the first time.

"In the $3 million to $5 million range in prime neighborhoods in San Francisco, there is a real shortage of good inventory," said Steve Gothelf of Pacific Union in San Francisco. "When quality properties pop up and are priced correctly, they fly off the shelf. The reason is that we have an abundance of extremely well-qualified people chasing very few properties. That ratchets up prices."

On the Peninsula, the market is also very active. "A majority of the deals are generating multiple offers," said Hugh Cornish of Coldwell Banker in Menlo Park. "We have a strong national and local economy and very little supply of luxury properties. We had half the inventory we normally have in the first quarter."

In the East Bay community of Lafayette, buyers are clearly being more discriminating. "If something is unique, shows well and is priced right, the property is selling," said Kim Strand of Better Homes Realty of Lafayette. "In high demand areas with good schools and a history of appreciation, it's really a normal market. However, in the recent past, you'd have multiple offers. We don't see that very often. The time to sell is now 30 to 45 days, not a week to 10 days."

See the statistics here.

- First Republic Bank

posted by SFResidence.com @ 6:23 PM