San Francisco neighborhoods that enjoyed surprising price jumps in 2014

[KamaAina]

http://blog.sfgate.com/ontheblock/2014/12/18/san-francisco-neighborhoods-that-enjoyed-surprising-price-jumps-in-2014/

When prices in the Outer-Mission appreciate 32% year-over-year, you know San Francisco real estate has had a banner year. The home above is what you can get now for the new median list price there ($749K). 2424 Alemany is a 3 bed, 2 bath, 1,470 sq. ft. home listing at $749K.

But when prices surge in what used to be “affordable territory,” what does this mean to the overall stability and sustainability of real estate? This past year has been a boom year in San Francisco’s real estate, leading some people to wonder if we aren’t headed for another bust. Do we have the makings of another bubble? Patrick Carlisle, analyst for Paragon Real Estate, says:...

All over the city, formerly less expensive neighborhoods saw dramatic increases in 2014. And though logical since the least expensive homes have the furthest to grow, the actual amount of that increase should raise a few eyebrows. This Paragon chart shows where people bought homes for under $1M in 2014. The list should be familiar to those who know the city, but what may be a shock is the median sales price in each. These data seem to hint that homes under a million will be harder than ever to find in 2015– anywhere in SF....

According to Redfin, the asking price of homes for sale in the Excelsior has increased 11.2%; Bayview saw an increase of 14.8%; Sunnyside, 20.7%– these increases are from December of 2013 to December of 2014– just one year.

"Do we have the makings of another bubble?" Couldn't come a moment too soon.

[Throd]

1. SF is built out. Building permits are difficult at best. Limited stock = high prices.

[KamaAina]

2. Hardly.

Many high-rises are going up South of Market. And there are the huge projects at Hunters Point and Treasure Island. Thing is, thanks to recent court decisions, they're all luxury: scarcely an affordable unit in sight.