Single-family home values within the San Francisco Metropolitan Area gained 0.4 percent in June while condominium values slipped 0.5 percent, according to the latest S&P Case-Shiller Home Price Index.
The San Francisco index for single-family homes is currently running 9.5 percent higher on a year-over-year basis. And having gained 58 percent since January 2010, the aggregate index is within 1.8 percent of its 2006 peak.
The index for the bottom third of the market gained 1.8 percent in June and is running 10.4 percent higher versus the same time last year while the index for middle third of the market gained 0.8 percent, up 10.4 percent year-over-year. The index for the top third of the market was unchanged in June but remains up 9.4 percent year-over-year (versus 9.8 percent higher in May).
According to the index, single-family home values for the bottom third of the market in the San Francisco MSA have doubled since 2009 and are back to October 2004 levels (22 percent below an August 2006 peak); the middle third is back to July 2005 levels (3 percent below a May 2006 peak); and home values for the top third of the market remain at the all-time high reached in May, 13.6 percent above their previous peak in August of 2007.
Having gained 0.3 percent at the same time last year, San Francisco condo values slipped 0.5 percent in June but remain 12.5 percent higher on a year-over-year basis and 14.6 percent higher than at the peak of the previous cycle in October 2005 (versus 15.2 percent higher in May).
For the broader 10-City U.S. composite index, home values gained 0.9 percent in June and are running 4.6 percent higher on a year-over-year basis but remain 13.4 percent below a June 2006 peak.
The long-term average annual home price appreciation for San Francisco measured 4.2 percent back in 2006, at which point the city was deemed “bubble-proof,” in part due to the inability to build on large swaths of underdeveloped land, such as Treasure Island.
Our standard SocketSite S&P/Case-Shiller footnote: The S&P/Case-Shiller home price indices include San Francisco, San Mateo, Marin, Contra Costa, and Alameda in the “San Francisco” index (i.e., greater MSA) and are imperfect in factoring out changes in property values due to improvements versus appreciation (although they try their best).