Ever since San Francisco County’s median sale price reached an unprecedented $1.3 million in April 2016, the county’s existing home sales have fallen by 8%, according to CoreLogic. Area home prices and home purchase loan applications fell flat between April and August 2016, as compared to the same period a year earlier.
New-home transactions have risen as San Francisco County experiences a “condo-building boom,” according to the San Francisco Chronicle. 1,200 new units were available in San Francisco this September – a number that rose a staggering 83% year over year since September 2015.
Most of the largest risks the San Francisco market faces are based in external factors. Employment gains, which have propelled the county’s growth in the past, are easing this year, with only a 2.4% YOY rate of growth as of August, and a potential increase in mortgage rates could raise the median monthly loan payment on a $1.1 million home by about $450 for every percentage point.