Putting off buying a house for even just a few months could cost you big-time in San Francisco.
The median price for a single-family home rose a jaw-dropping $100,000 in the City by the Bay—reaching an all-time high of $1.6 million—from the last quarter of 2017 to the first quarter of 2018, according to a recent analysis from the San Francisco–based Paragon Real Estate Group. That’s six figures in only three months!
House prices in the Bay Area city, a favorite of extremely well-paid techies, shot up nearly 24% in the first quarter of this year, compared with the first quarter of last year. And they’re likely to rise even further, as prices usually surge in spring and summer, says Patrick Carlisle, Paragon’s chief marketing analyst.
“We didn’t see this coming,” he says. “I don’t think I’ve ever seen this kind of jump.”
In most parts of the country, $100,000 can fetch buyers a move-in ready, multiple-bedroom house in a nice neighborhood. The median home price nationally was just $279,900 as of March 1, according to realtor.com® data.
The nearly incomprehensible rise in San Francisco is due to the dearth of houses on the market, a problem that shows no signs of abating. Since the city occupies a peninsula, there isn’t much room to expand. Builders have been putting up condos, but…