The third quarter ended with median sales prices up compared to September 2016. Both single family homes and condo/ lofts were up about 10% year-over-year. Interestingly, September had the lowest median sales price in the quarter. This is because in real estate any given month’s sales are actually a reflection of transactions that were negotiated the previous month (assuming a 28-40 day escrow period). So September sale prices show what was occurring in August, traditionally one of the slower months of the year.
What we can typically look forwad to in September is a lift in inventory as the Fall selling season begins. This year did see a slight uptick in homes put on the market, but not nearly as much as last year, and it was not enough to satiate the enormous demand. Active single family home listings in September were down almost 30% compared to the same month last year, and condo/ loft active listings were down over 20%. New listings that came onto the market were also down double digits for both single family homes and condos.
Not surprisingly, given the underwhelming lift in inventory and unabated buyer demand, most homes sold for over their list price, although condos/ lofts saw a slight decrease of homes sold over asking compared to this time last year. Single family homes sold for about 16% over their list price, while condos and lofts sold for 5% over asking.
As homes practically flew off the proverbial shelves, Months Supply of Inventory (MSI) and Days on Market (DOM) plummeted compared to the same month last year. MSI dropped 31% to less than 2 months for single family homes and almost 24% for condos and lofts, which came in at just 2.4 months. Single family homes spent an average of 28 days on market, a drop of almost 32% compared to last year, while condos and lofts saw a slight uptick in time on the market at 42 days, down 1 day compared to last year.
As we head into the holidays, expect inventory to tighten particularly in the higher-end luxury market. But fear not! If you’re thinking of selling, buyer demand continues to be high and you’ll attract the most serious of them to your listing. If you’re planning to buy, this is a great time to get a great home with potentially less competition.
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.