By John M Lee

In the Richmond District, single-family home prices rose by double digits for the fifth year in a row, with median prices appreciating by 10.3 percent in 2016 – a 94 percent increase from 2011. The Richmond Home Sales Comparison chart shows the results in 2016 as compared with prior years.

The data was gathered from the SF Association of Realtors’ Multiple Listing Service and consists of single-family home sales in the Richmond, Lake Street, Presidio Heights, Jordan Park, Laurel Heights, Lone Mountain and Sea Cliff areas.

In 2016, there were 172 sales, versus 190 for 2015 and 224 for 2014, a 9.5 percent decrease from 2015 and 23.2 percent de- crease from 2014. The annual median price comparison shows a 10.3 percent increase year over year, as compared to a 12.9 per- cent increase from 2014 to 2015, and an 24.5 percent increase from 2014. This represents five straight years of double-digit ap- preciation on large numbers! The amount of marketing time need- ed to sell a home increased from 13 days in 2015 to 18 days in 2016, versus 26 days in 2014, an increase of three days, or 20 per- cent, from 2015 and a decrease of eight days, or 30.8 percent, from 2014.

These are results of buyer de- mand in excess of seller supply; buyers being priced out of the market; low mortgage interest

rates throughout the year, with a half percentage point jump after the November election; a stable economy; low unemployment rates; and higher consumer con- fidence … all positive signs for the real estate market, except for the rising interest rate.

During 2016, the major stock indexes dipped in the first quar- ter but recovered nicely the rest of the year, ending with a post- election jump. As of the writing of this article, the Dow Jones has risen 14.4 percent for the year. The consumer confidence index was relatively flat and will finish at a high point this year. The good news is that our unemploy- ment rate has been steady throughout the year at about 4 percent, a level which represents full employment in the eyes of many economists.

The interest rate hovered under the 4 percent range through- out the year for a 30-year fixed rate mortgage, but it did jump about a half a percent since the November election. As well, the federal reserve banks did raise short-term interest rates in December to three-quarters of one percent. This should not have an immediate effect on mortgage rates, but might in the future. The foreclosure of homes is still virtually non-existent. The prices of homes have risen substantially above that of the last peak in our real estate cycle so almost everyone who owns a home has equity in their property.