Expand Graph
Probably the most interesting aspect of this chart is that the average single-family home, from 1994 through 2000, sold at a 12% premium over the average condominium. The premium started to expand dramatically in 2001 and averaged 26% through 2009. Why? Because there is no land to build any more single-family homes in San Francisco, while condominium construction has accelerated appreciably since 2000. Supply and demand economics are at work.
Expand Graph
The steady year-to-year price increases since 1994 came to an end in 2008 with a 7.0% decline. Prices declined 13.7% in 2009 on top of a 7.0% decline in 2008.. For the 15-year period 1994 to 2009, the chart depicts an average annual price increase of 8.0%. The sharp reduction in homes sold from the 3,000 transaction level (2002 – 2005) is a reflection of tightening lending standards and reduced affordability.
Expand Graph
For the 15-year period 1994 to 2009, the chart depicts an average annual price appreciation of 7.0%, including the 13.7% decline in 2009. The chart is for re-sales only and does not include new construction sales, which have been a significant factor recently (as much as an estimated 1,000 units in the last few years). New construction sales put price pressue on condominium sales throughout the City.
