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January 2005
San Francisco Real Estate Market Update for
December 2004

The San Francisco Real Estate Market for December remained strong despite shrinking inventories. The number of homes sold dropped in all three of the categories we track. However, average selling prices were still over 100% of listing prices. Because the number of homes on the market during November, December, January and February are usually is down dramatically, early in this new year could be an incredible opportunity for SELLERS to list their properties.

Last month we introduced a new vehicle, Private Annuity Trusts, an alternative to 1031 Exchanges. Using this unique strategy, sellers are finding ways to cash out of their properties with little or no tax consequences, rather than paying tax on huge capital gains. Please check our website for more information.

Regarding sales in the last week of December, Avram Goldman reported, "...The market of 2004 has set new records and is going out the same way it came in. Although it is the holidays, buyers are still looking for the right home. That isn’t easy, given the historically lowest inventories since 1999, which were the lowest ever. The trend continues. In spite of these inventories, sales held well. Nine offices reported steady sales. Believe it or not, two showed increasing sales... Twenty-three offices showed declining listing inventories, four steady and one increasing. This dearth of listings, keep multiple offers in most marketplaces the norm rather than the exception.."

The number of Single Family Homes for December sold was down over 17% from November, yet the average listing price was over 7% higher than the average listing price for the previous month. Incredibly, the sales price was still over 106% of the listing price. This indicates that multiple offer situations are still common due to high demand and low inventory.

The number of Condominiums sold in December was down from November as were the average listing price and the average selling price. Even so, the difference between average selling price was up slightly from the previous month to 104.67% of the listing price.

As expected, the number of homes in Overall Sales for December was down. However, the average listing price was still over 105% of the listing price.

Interest rates seem to be holding steady with some great loan packages still available.

We included figures below to compare 2004 with 2003 sales activity. As you can tell, the trend has been pointing toward continually higher prices. And 2005 looks like it could be an even better year for sellers with vision. Don't miss out on your opportunity to buy or sell! To repeat, San Francisco Real Estate continues to be a great investment!

December 2004 **

November 2004 **

Sales Figures 2004 **

Sales Figures 2003 **

* Includes Single Family Homes, Condo/Coop/TIC and Loft, 2-4 Units, and 5+ Units.
** Figures subject to change as Multiple Listing Service is updated.

Realtor.com is the official site of the National Association of Realtors® (NAR) and is a search engine for real estate nationwide. Realtor.com has all of San Francisco's listed homes and condominiums.