Median home sales and average rent prices - the SF real estate market moves quickly, so allow me to keep you in the loop.
As I mentioned in the last update, the luxury home market has experienced a significant cool-down during this past fall. And while the rest of the real estate market is still a seller's market, this cooling effect was felt across all market segments in the City.
Take a quick look at the median home sales prices above. If you look closely, you'll see a seasonal pattern that rises and falls each year. Spring and autumn typically show spikes in sales activity, while summer and winter usually show dips in sales activity.
The October median sales prices was $1.3m for houses and $1.1m for condos.
Unlike home prices, rent prices in the City do not fluctuate with the seasons. Average asking rents in San Francisco are currently $3,623. Keep in mind that rents vary drastically from neighborhood to neighborhood.
There are many tax benefits to home ownership that the general public is unaware of. I talk about a few of these benefits in a past piece that compares investing in SF real estate versus investing in Apple stock. When we include the tax benefits listed at the end of that article, factor in our low interest rates, and consider the appreciation potential of an SF property, you'll find that the long term effects of home ownership outweigh the short-term savings from renting. Home ownership is one of the best ways to accumulate wealth in America.
Are you curious about the cost of renting versus the cost of buying? Give me a quick call so I can break down the numbers and show you the advantages and disadvantages of renting and owning. All it takes is a quick 20-minute phone conversation.
Thank you for reading, and see you back soon!