Zillow Predicts Price Drop in SF

The long-running seller’s market in San Francisco may finally be coming to an end — especially in certain neighborhoods — according to data from Zillow, which is predicting a half-percent drop overall in the city within the next year. The real estate site “takes into account factors like current home value appreciation, inventory, and incomes,” to come up with its forecast, according to Zillow’s Lauren Braun.

The Marina is expected to see the biggest drop — 2.9 percent — over the next year. Given the neighborhood’s current average price tag of $1,957,900, if Zillow’s predictions are accurate, that represents an over-$50,000 savings for those willing to wait it out until 2018. Other neighborhoods likely to see a decline are the Financial District, SoMa and Civic Center; Zillow is predicting a 2 percent drop in these neighborhoods.

Bernal Heights continues its seemingly unstoppable upward trajectory with a 1.3 percent increase predicted.

Bernal Heights’ projected increased matched predictions for the Outer Richmond. Both neighborhoods fared the best in the city in Zillow’s model and were followed closely by the Central Sunset, Merced Heights and Forest Knolls, which the real estate site predicts will all increase in value by 1 percent or higher in the next year.