Month: November 2018

Inventory continued to be strong in October although some…but not all…homes were stitting on the market longer than in months past. The majority of homes are still selling for over their list price, though the percentage over that price is less than we’ve seen previously. This is particularly true for single family homes, which for many months have seen great comeptition. In October the months supply of inventory for single family homes reached 2 1/2 months, which was lower than the previous month but still up double digits compared to the same month last year.

This may be the result of continually rising interest rates, a mercerial stock market, or anxiety before the November midterm elections. Still, the economy remains strong and it’s still a seller’s market. See below for the October statistics.

Median Sales Price:

Median sales prices for single family homes remained lofty at $1.6 million in October. However, as we’ve seen, the rate at which prices have been increasing is slowing. Compared to October 2017, the median price increased only 1.6%. Condos and lofts saw a greater increase of 6.1% compared to the same month last year with a median price of $1,252.500.

New Listings:

Fewer new listings came on the market compared to last month and October last year. New listings for single family homes were down just over 2% while new condo and loft listings were down 8.7% compared to this time last year.

Active Listings:

Active listings were up in October, meaning homes are spending more time on the market and there’s more inventory still available at the end of the month. Single family home active listings were up 14.6% compared to the same month last year, and condo’s and lofts were up 12.5%.

Percentage Sold Over List Price:

The vast majority of single family homes continue to sell for over their list price, though that percentage is slowly decreasing. In October, over 82% of single family homes sold for over their list price which is a 1.6% decrease compared to the same month last year. Two-thirds of condos and lofts sold for over their asking price, which was a 3.7% increase compared to the same month last year.

Average Percent of List Price Received:

The average percentage of list price received for single family homes has also remained steady over the past few months, but slightly lower than it has been in previous months. On average, single family homes received 114% of their purchase price, down 1.4% compared to October of last year. Condos and lofts, while also remaining steady recently, sold a bit up compared to last year at an average sales price of 107.5%.

Months Supply of Inventory:

As mentioned above, single family homes have been staying on the market a bit longer than they have in the past. Last month, there was 2.5 months of inventory for single family homes, up 13.6% compared to October last year. Prior to March of this year, MSI for single family homes was under 2 months. This is an indication that the market is starting to come into balance. Condos and lofts have almost 3 months of inventory, up 7.4% compared to the same time last year.

Average Days on Market:

Single family homes on average spent 24 days on market before going into contract. That’s up 4.3% compared to October 2017. Condos and lofts, on the other hand, spent 26 days on the market, down 13.3% compared to the same month last year.

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.

 Is the tide turning? After years of consistent and exponential growth the market has taken a bit of a pause. Whether it’s a market shift is yet to be seen, but there has definitely been some change in the air as some properties are selling quickly with multiple offers, while others are languishing on the market longer and even taking price reductions. . This could be a variety of reasons. Interest rates have gone up and prices may be increasing to a level that disqualifies buyers from getting in the market. Buyers are exhausted after years of having to compete for properties, and certainly many investors are sitting on the sidelines to see if Prop 10 passes next month. Finally some decent inventory, but buyers seem to be taking a wait-and-see stance. Perhaps this is just due to the midterm elections, or perhaps not.

 As CNBC reports, this trend is being seen across the entire Bay Area. We’ll have to keep an eye on whether this is a turning of the tide, or a mementary blip. Regardless, it’s never a bad time to buy real estate in San Francisco. One thing that’s been shown time and again is that eventually prices will rise above previous peaks. San Francisco will always be a desirable place to live and call home.

Below are the stats for September.

Median Sales Price:

Median prices for single family homes continued to inch down slightly in September as the Fall selling season began. However, prices were up over 13% compared to the same month last year. Condos and loft prices also dipped slightly compared to last month, though they were still up 5% compared to the same time last year.

New Listings

September typically sees a spate of new listings on the market, and that was true this year as well. New single family homes were up significantly from August, and up 5% compared to the same month last year. New condo and loft listings were up compared to last month and up 4% compared to September 2017.

Active Listings:

The number of properties available for sale at the end of the month were not only up dramatically from the same month last year, but it was the largest number of active listings at the end of a September in the past three years. Single family homes saw an over 20% increase of active listings compared to the same month last year. Condos and lofts also saw a 4% increase.

Percent of Properties Sold Over List Price:

While the majority, almost 82%, of single family homes sold for over their asking price in September, that figure is down 5% compared to last September. On the other hand, almost 65% of condos and lofts sold for over their list price, up 17.5% compared to the same month last year.

Average Percent Over List Price Received:

For most of the year, the amount buyers are willing to bid over list price for single family homes has slowly inched down. After a high in June, the percentage continued to decline. In September the average percentage of list price for single family homes was almost 116%. This was down less than 1% compared to September of last year, but the declining trend seems to be continuing. Condos and lofts, on the other hand, while also slowly inching downward saw a slight uptick compared to last year with the average percentage of list price recieved up almost 2% to about 107% of asking price.

Months Supply of Inventory:

As mentioned earlier, September typically sees an uptick in inventory available. Months supply of inventory (MSI) shows us the absorption rate of how quickly those homes are being sold. While we did get a boon of new homes on the market in September, a large increase in MSI for single family homes illustrates that these home are not selling as quickly as they have in the past. At month’s end, single family homes had 2.9 months of inventory. That’s up over 20% compared to the same month last year and the highest since September 2016’s 2.8 month’s of inventory. Condos and lofts remained flat with 3 months of inventory, the same as September of last year. Still, that’s a far cry from the 5-6 months of inventory needed to create a balanced market.

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.