San Francisco Inches Closer to Seattle in November S&P/Case-Shiller Home Price Index
Seattle continues to lead the nation in home price growth for the fifteenth month in a row, but San Francisco is nipping at the Emerald City’s heels according to the latest S&P/Case-Shiller Home Price Index.
After a slight dip in home price growth from September to October, residential home prices resumed their upward movement in November, at a 0.18% growth rate. As noted in the official report released by Case-Shiller, “Seattle, Las Vegas, and San Francisco reported the highest year-over-year gains among the 20 cities.” Seattle reported 12.7% year-over-year gains, while Las Vegas followed closely behind at 10.6%, and San Francisco saw a 9.1% increase.
In the last three months, San Francisco has experienced a bit of a “growth spurt,” with prices now above what they were when the market reset nearly a decade ago. As Drew Becher of the Bay Area’s Paragon Real Estate said, “All neighborhoods in the city of San Francisco itself have now surpassed previous peak values by very substantial, and sometimes astounding margins,” which exceeded $1,087,500 as of October 2017.
Seattle’s growth has been much more organic in nature, as local employers have hired unprecedented numbers of new employees, which has driven a demand for in-city homeownership that has exacerbated the anemic downtown condominium shortage. This means many would-be buyers are either incubating in apartments, or are looking to single-family homes around the city and beyond its limits. This competition has brought prices up across the region, from the Eastside up to Skagit County, and down into Tacoma.
Read more about Seattle’s performance on the Case-Shiller Index below and in their full report here.