Hello and Happy September!
Once again, August was all about inventory….or lack of it…
How Low Can We Go?
August saw the lowest levels so far this year in new inventory, active listings, and months supply of inventory (MSI). For buyers, one welcome statistic that also decreased was the median sales price for a single family home, althought it was only $20,000 less than last month.
Active Listings: The number of active single family homes was down over 30% compared to August of last year. Condo/ loft listings dropped more than 25%. This is the lowest amount of active inventory we’ve seen since December, 2016.
New Listings: Like active listings, the number of new listings coming to market in August was down double digits. New single family home listings were down 18% while condo/ loft new listings decreased by almost 25% compared to last year. Traditionally, August is seen as a fairly slow real estate month so many sellers choose to wait until the Fall months to bring their home to market. Those sellers who did come on in August, though, were handsomely rewarded as buyer demand was high and options were few. This was the lowest number of new listings to come on the market since January.
Percentage of Properties Sold Over List Price: Not surprisingly, the vast majority of homes sold in August sold for over their list price. Almost 80% of single family homes and 64% of condo/ lofts did.
MSI: Months Supply of Inventory, the amount of time it would take given the current rate of sales for all available inventory to be sold, also nose-dived to its lowest level since December 2016. MSI for single family homes was at a measly 1.5 months, down over 30% compared to August 2016. Condo/ lofts was at just 2.1 months, down 25% compared to August of last year.
Median Sales Price: The median sales price dropped a mere $20,000 compared to last month, coming in at $1,380,000. However, this was up 10.4% compared to August 2016. Condo/ lofts increased slightly to $1,208,000, up almost 11% compared to last year.
For so long this broken record of low inventory makes one wonder: when will this end? Will inventory ever return to San Francisco, and will prices ever stabilize?
Happily, post-Labor Day we’ve seen a plethora of new inventory on the market. Quite a relief! While it’s highly doubtful there’s enough to cause prices to decrease, it will hopefully stem some of the intense competition buyers have faced over the summer.
The fine print: All information deemed reliable but not guaranteed or warranted. Data comes from MLS so does not include off-market and most new construction condo sales. The San Francisco real estate market is dynamic so statistics can change on a daily basis. These statistics are meant to be a snapshot of the day and time they were pulled.
Photo courtesy of Kaddi Sudhi