Statistical Tables | Selecting the Right Mortgage

Average Price for Homes Sets New High
Trends at a Glance
(Single-family Homes)
  Apr 18 Mar 18 Apr 17
Home Sales: 187 188 192
Median Price:  $1,650,000  $1,680,000  $1,402,500
Average Price:  $2,250,634  $1,901,224  $1,839,603
SP/LP: 111.4% 113.9% 109.8%
Days on Market: 19 22 26
(Lofts/Townhomes/TIC)
  Apr 18 Mar 18 Apr 17
Condo Sales: 282 282 221
Median Price:  $1,232,500  $1,250,000  $1,100,000
Average Price:  $1,338,607  $1,363,639  $1,307,321
SP/LP: 108.4% 105.5% 103.3%
Days on Market: 26 27 33

The average sales price for single-family, re-sale homes set a new high in April, gaining 22.3%, year-over-year. It went back over $2,000,000. The median price was up 17.6%.

The average price for condos/lofts in San Francisco gained 2.4% over last year. The median price was up 12%.

Home sales were down for the sixth month in a row, falling 2.6% year-over-year. Year-to-date, home sales are off 29.7%.

Condo/loft sales were up 27.6% over last April.

Multiple offers continue to be the norm. The sales price to list price ratio, or what buyers are paying over what sellers are asking remains in the triple digits: 111.4% for homes and 108.5% for condos/lofts.

The ratio has been over 100% for homes since December 2012 and for condos since February 2012.

Average days on market, the time it takes from when a property is listed for sale to when it goes under contract, was nineteen for homes and twenty-six for condos/lofts.

April Momentum Statistics

Sales momentum…
for homes rose 0.5 of a point to –27.2. Sales momentum for condos/townhomes was up 2.3 points to –3.5.

Pricing momentum…
for single-family homes rose one point to +18.7. Pricing momentum for condos/lofts rose 1.2 points to +9.8.

This is an extraordinarily tough market for buyers. It's important to be calm and realistic. If you don't know what to do or where to begin, give me a call and let's discuss your situation and your options.

The graph below shows the median and average prices plus unit sales for homes.

The following chart shows the median price difference compared to the year before.

 

The graph below shows the median and average prices plus unit sales for condos/lofts.

The following chart shows the median price compared to the average price. The average price will always be more than the median price. The greater the difference, the more higher priced homes are being sold.

The real estate market is very hard to generalize. It is a market made up of many micro markets, especially in San Francisco. For complete information on a particular neighborhood or property, or for an evaluation of your home's worth, call me.

If I can help you devise a strategy, call or click the buying or selling link in the menu to the left.

Monthly Statistics

Complete monthly sales statistics for San Francisco are below. Monthly graphs are available for each district in the city by clicking the links to the left.

April Sales Statistics
(Single-family Homes)
  Prices Unit     Yearly Change Monthly Change
  Median Average Sales DOM SP/LP Median Average Sales Median Average Sales
San Francisco  $  1,650,000  $  2,250,634 187 19 111.4% 17.6% 22.3% -2.6% -1.8% 18.4% -0.5%
D1: Northwest  $  2,037,500  $  2,341,750 18 14 113.8% 14.0% -2.0% 28.6% 3.2% 5.5% 20.0%
D2: Central West  $  1,600,000  $  1,636,911 38 14 128.1% 18.5% 13.9% 8.6% 9.0% 8.5% 26.7%
D3: Southwest  $  1,325,000  $  1,380,092 11 23 123.7% -0.4% 0.8% 83.3% 3.5% 11.3% -15.4%
D4: Twin Peaks  $  1,735,000  $  2,036,206 25 13 121.2% 6.3% 10.7% -3.8% -6.9% 6.2% 4.2%
D5: Central  $  2,105,000  $  2,549,348 23 22 106.0% -14.1% 0.0% -20.7% -12.3% 0.6% -25.8%
D6: Central North  $  4,460,000  $  4,003,333 3 3 98.9% 186.8% 157.4% 50.0% 71.5% 52.0% -40.0%
D7: North  $  8,555,000  $  8,573,738 10 20 99.1% 40.2% 59.4% 0.0% 105.9% 109.7% 0.0%
D8: Northeast  $  9,305,000  $  9,305,000 2 32 99.0% 182.0% 182.0% 0.0% 279.8% 279.8% 100.0%
D9: Central East  $  1,675,000  $  1,885,232 21 13 113.4% 15.3% 29.4% -19.2% -1.8% -3.7% -8.7%
D10: Southeast  $     976,000  $     995,722 36 29 118.0% 10.3% 9.7% -14.3% -3.4% -2.2% 0.0%

 

April Sales Statistics
(Condos/TICs/Co-ops/Lofts)
  Prices Unit     Yearly Change Monthly Change
  Median Average Sales DOM SP/LP Median Average Sales Median Average Sales
San Francisco  $  1,232,500  $  1,338,607 282 26 108.4% 12.0% 2.4% 27.6% -1.4% -1.8% 0.0%
D1: Northwest  $  1,525,000  $  1,543,421 19 18 115.4% 0.5% 2.5% 216.7% 1.3% 10.9% 58.3%
D2: Central West  $  1,175,000  $  1,133,500 8 11 113.9% n/a n/a n/a 6.8% 13.4% 60.0%
D3: Southwest  $  1,180,000  $  1,167,370 3 17 110.5% 69.8% 32.2% -40.0% -20.8% -21.7% 200.0%
D4: Twin Peaks  $     965,000  $  1,108,000 5 16 107.0% 33.1% 40.4% 0.0% 7.2% 23.6% 25.0%
D5: Central  $  1,500,000  $  1,467,681 47 18 115.9% 14.5% 7.7% 34.3% 11.1% 5.0% 0.0%
D6: Central North  $  1,020,000  $  1,219,345 29 23 110.8% -14.6% 5.6% 16.0% -27.7% -10.3% -17.1%
D7: North  $  1,300,000  $  1,650,196 27 17 108.0% -9.7% -21.7% -3.6% -7.0% -4.3% -20.6%
D8: Northeast  $  1,225,000  $  1,574,849 28 30 104.8% 35.0% 32.2% -12.5% 1.9% 14.4% -26.3%
D9: Central East  $  1,089,000  $  1,222,797 104 36 103.9% 5.2% 5.5% 25.3% 0.1% -6.5% 10.6%
D10: Southeast  $     818,000  $     877,667 3 24 108.2% -1.6% 5.6% 50.0% 2.9% 13.8% -57.1%

Selecting the Right Mortgage

Selecting the type of mortgage that best suits your needs is not a simple undertaking. The right mortgage will depend on many different factors, including your financial situation and how you expect it to change in the future, how long you'd like to keep your house, and how comfortable you are with the possibility of your mortgage payment changing.

For example, a 15-year fixed-rate mortgage can save thousands of dollars in interest payments over the entire term of the loan, but your monthly payments will be greater. With an adjustable-rate mortgage, you may start with a lower monthly payment  -- but your payments could increase.

The best way to find the right mortgage for you is to discuss your finances, plans and preferences with a mortgage professional, whom your REALTOR® can recommend.

Fixed-Rate Mortgages

Fixed-rate mortgages, the most common type of mortgage, offer consistently stable monthly payments. Your property taxes and homeowner's insurance may increase, but your monthly payments typically won't fluctuate.

With fixed-rate mortgages, you have the option of choosing a 30-year, 20-year, 15-year or 10-year repayment plan. You may shorten the loan through a biweekly mortgage, allowing you to make the equivalent of an extra month's payment per year. In selecting the length of your repayment, remember that a shorter loan carries higher payments but accrues less interest and allows you to build equity quicker.

Adjustable-Rate Mortgages

The interest rate on an adjustable-rate mortgage (ARM) is dictated by changing market rates. When interest rates rise, your monthly payments will go up, and when interest rates decrease, your monthly payments will go down accordingly.

ARMs often provide a lower initial interest rate than fixed-rate mortgages, attracting people who need lower payments early in the loan in order to qualify for a mortgage. ARMs also can benefit people who plan to move or refinance in the near future or those who expect their incomes to increase in the coming years.

Before applying for an ARM, find out how high your monthly payments can go during the life of the loan. An ARM includes two caps or limits on interest rate increases; one cap states the boundary for how high your interest rate can go during each adjustment period, and the other cap sets the maximum total amount of all interest adjustments over the entire term of the loan.

The rates of an ARM typically change once or twice a year, and there is usually a lifetime cap on both the individual rate adjustments and the total amount the rate can change over the life of the loan. By applying the terms of the caps to your mortgage payments, you can anticipate the worst-case scenario prior to applying and determine if this figure is in line with your finances.

Reverse Mortgages

A reverse mortgage is a loan made to senior homeowners that allows them to convert the equity in their homes to cash for living expenses, home improvements, in-home health care, or other needs.

To obtain a reverse mortgage, you must meet certain criteria that differ greatly from the qualification requirements for other mortgages. Reverse mortgages are generally limited to borrowers 62 years or older who own their own homes either outright or nearly so. Homes also must be clear of tax liens. And, unlike other mortgages, seniors don't have to meet income or credit requirements to qualify for a reverse mortgage.

Borrowers typically have the option of receiving the reverse mortgage's proceeds in the form of a lump-sum payment, fixed monthly payments for life, or a line of credit. A reverse mortgage's interest rate is usually an adjustable rate that fluctuates monthly or yearly. However, the size of monthly payments that borrowers receive doesn't change.

Balloon Mortgages

Balloon loans are short-term mortgages with some of the features of a fixed-rate mortgage, like low interest rates, but without the benefit of full amortization. As opposed to a 30-year fixed-rate mortgage, balloon loan payments only cover part of what you've borrowed during the term of the loan. At the end of the term, you're required to pay off the loan's balance by refinancing or making a lump-sum payment.

Balloon mortgages are typically five-, seven- or 10-year loans, so they can be beneficial to borrowers who anticipate selling or refinancing their homes in a short period of time.

Many companies offer a conversion feature at the end of the loan's term. For example, the loan may convert to a 30-year fixed loan at the 30-year market rate plus a certain percentage point. To qualify for a conversion, you usually need to be in good standing with the payments on your balloon loan. Balloon mortgage programs with conversion options are also called a 7/23 convertibles or 5/25 convertibles.

Buy-down Mortgages

Today's mortgage lenders have developed variations on the old buy-down method of offering an interest rate that is 2 percent below the fixed rate for the first year and 1 percent below the fixed rate for the second year, followed by 28 years of paying the regular fixed rate. Buy-downs now charge higher interest in the beginning of the loan to cover the future yields.

For example, if the current market rate for a fixed-rate loan is 8.5 percent at a cost of 1.5 points, the buy-down gives the borrower a first-year rate of 6.5 percent, a second-year rate of 7.5 percent and a third- through 30thyear rate of 8.5 percent. The cost would be 4.5 points.

dxy$4523