In the past decade, San Francisco median single family home sold prices recovered from a devastating decline in the financial and housing crisis to rise 130% – from $688,000 to $1,577.500. Condo/loft/TIC sold prices rose 94%, from $645,000 to $1,250,000.
These rises compare to the median household income increase over the same time period of 57% – from approximately $70,000 to $110,000.**
2009 mortgage rates were just above 5%, compared to 3.5% today.
Single family home inventory was higher – 4-5 months for single family homes vs. half that level today. Likewise, condo/loft/TIC’s inventory was also about double what it is today, which is slightly higher than single family homes.
The closing year of the decade, 2019, also had strong median sold price growth: 5.2% and 4.2%, respectively, for single family home and condo/loft/TIC’s.
Today, the question everyone is asking: what to expect in 2020? All signs remain strong that real estate prices will continue to rise in because of the following factors: low interest rates, low inventory, strong buyer demand and an exceptionally strong job market. Until one of these factors changes, the equation has only one possible outcome: higher prices.