There is a lot of talk going around lately about activity on the low end of the market beginning to strengthen. Most people attribute this to the bargain hunters and investors snatching up foreclosed properties, REOs, and short sales. Curious to see what’s happening here in San Francisco, we set out to crunch some numbers and get some answers.
Which market segments are asleep?
Our goal was to see which price ranges have experienced the highest declines in activity since peak. We tallied up the numbers of sales in each segment per year. We found the low end of the market experiencing major declines in activity while the high end being less affected. Here are the results:
- $0 to $499,999 – This segment has experienced a drop in sales activity of 75.69% since peak.
- $500,000 to $999,999 – Has experienced a drop in sales activity of 46.18% since peak.
- $1M to $1,499,999 – Has experienced a drop in sales activity of 37.88% since peak.
- $1.5M to $1,999,999 – Has experienced a drop in sales activity of 36.90% since peak.
- $2M to $2,499,999 – Has experienced a drop in sales activity of 16.27% since peak.
- $2.5M to $2,999,999 – Has experienced a drop in sales activity of 14% since peak.
- $3M and above – Has experienced a drop in sales activity of 14.97% since peak.
Because we looked at the data on an annual level, 2008 was our last complete year for the analysis. Next time, we’ll zero in on the last 5 months to get a more updated view of the market and see if the aforementioned claims are true. Speaking of claims, we’re also hearing that the high end of the market is now going through trials and tribulations that the low end has already experienced. Either way, the data above tells a good (or not so good) story of what has happened in San Francisco through the end of 2008.
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