by Liz Lucking | Mansion Global
Christian Heeb/Getty Images
Cheaper neighborhoods see larger percentage increases than luxury areas
House prices are on a tear in San Francisco after hitting new highs in April, according to the latest report Thursday from Paragon Real Estate Group.
On a three-month-rolling basis, the median sales prices of homes in the city jumped $55,000 between March and April to hit $1.665 million, a year-over-year increase of 23%, according to the report.
While prices are soaring across the city, increases have been highest in some of San Francisco’s most affordable neighborhoods.
“Though median home price appreciation rates throughout the city have been incredibly high by any reasonable measure, some neighborhoods have outpaced the norm,” said Patrick Carlisle, chief market analyst at Paragon, in the report.
“Less expensive homes have appreciated considerably faster than more expensive homes. Also, some of the most affordable districts were hammered by foreclosure sales after the 2008 crash, which brought their sales prices down to unnatural lows by 2011—setting the stage for dramatic recoveries,” Mr. Carlisle said.
Bayview, with the most affordable houses in San Francisco, has the highest compound annual appreciation rate since 2011, 18.3%, or a six-year total rate of 174%, bringing median house prices up to $822,500.
In Inner Mission—which saw the second highest compound annual increases at 14.7%—prices were propelled by the neighborhood’s transformation into “the hottest, hippest district in the city, especially among younger high-tech workers,” the report said.
In dollar terms though, the city’s more affluent neighborhoods have seen the biggest price rises. Pacific and Presidio Heights, Cow Hollow and Marina saw house prices rise upward of $2 million.