A new market report from Paragon Real Estate Group reports that the average San Francisco home considered a “fixer-upper” currently sells for a median price of $920,000.
Patrick Carlisle, chief market analyst and vice president of business development for Paragon, attributes this high price to the value of what can be built on the land once the “fixer-upper” is torn down. "The funky 1,200 square foot fixer-upper turns into a 3,500 square foot modern home. Contractors and home flippers love these opportunities, in a city where very, very few new houses are now built from scratch."
He also notes that the San Francisco single-family market has stalled: few to no new houses are being built, little job turnover exists, and current Baby Boomer residents are choosing to “age in place”. The median sales price for a single-family home in San Francisco in 2016 was $1,325,000.