Luxury Market in San Francisco is Blooming

In the first quarter of 2010, San Francisco’s luxury housing market is showing significant signs of improvement. Even as millions of Americans struggle with unemployment and the prospect of further foreclosures, a small group of home buyers are purchasing luxury residences priced at $2 million or more. Sales in San Francisco’s luxury market have increased significantly, compared with first quarter 2009. The number of homes sold in the first quarter 2010 — at 44 — was up 55% from a year earlier. We define luxury as any single family home, condo, co-op or TIC sold over 2 million dollars as reported in the MLS.

There has been greater interest in lower-end luxury properties (2m-4m) while demand over $4 million is slower. Additionally, the single family home segment of the luxury market is driving the majority of the growth. Year over year, the number of condo/co-op sales is flat while the number of single family home sales has more than doubled. Part of the surge in the market is from all-cash buyers. Financing is still difficult to obtain in that price range. When financing becomes a bit easier to get, we’ll see more activity in the condo market as well.

All-in-all, the market is blooming and we’re pleased to be a part of it.