Month: July 2020

Home / Month: July 2020

Real Estate Agent with Park North Real Estate CA DRE# 01893222

June 2020 San Francisco Real Estate Market Update

June statistics show that after a so-so May San Francisco real estate revived a bit, particularly with single family homes which hit a new median price high. Condos and lofts prices also lifted compared to May, but are still down compared to last year. Dirt-cheap interest rates continue to drive buyer demand, and create an excellent opportunity for buyers who are ready and able to jump into the market. Interest rates have great impact on buying power, the amount of a loan buyers can qualify for.

Overall, inventory has increased with months supply of inventory reaching it’s highest levels since 2011. That said, we are still in “sellers market” territory, especially for single family homes.

Median Sales Price:

The median sales price for a single family home in San Francisco rose to over $1.8 million in June, a 3.1% increase over the same month last year. This is at least partially due to a rise in higher end home prices ($2M+), which fell in May but rebounded again in June. Meanwhile condo and loft prices decreased 8% year-over-year, though are still up compared to May. An influx of inventory (these statistics do not include new construction sales, which are typically not listed on the MLS but contribute to overall inventory) offer buyers more options. A closer look also shows that condo and loft units priced under $1.5 Million saw decreases in median price, while units more than $1.5 Million had positive median price growth. Even with very low interest rates entry level buyers may be struggling more with tightened loan requirements and/ or job security, causing them to take a pause on their home buying search.

New Listings:

New listings for single family homes remained fairly the same compared to last June and to last month, Condos and lofts saw a 40% jump in new listings compared to the same month last year.

Active Listings:

Active listings, defined as the number of listings available for sale at the end of the month, also soared an astounding 50% for condos and lofts compared to June 2019. Single family homes, on the other hand, increased by less than 10% year-over-year, though there were fewer than last month.

Percentage of Properties Selling Over List Price:

Fewer than half of single family homes sold over their list price in June, down a third compared to the same month last year and the lowest we’ve seen in years. Only 36% of condos and lofts sold for over their list price, down 45% year-over-year. I think this is in part due to an increase in inventory, especially for condos, as well as more “transparent pricing.” With no public open houses and fewer buyers, homes are being priced closer to what the seller wants or expects to get for the sale of their home.

Average Percentage of List Price Received:

Single family homes on average sold about 5.5% of their list price in June, down 8.5% compared to last June. Condos and lofts sold at just a smidge above list pice, 100.4%, on average. This is down 6.6% compared to last year.

Months Supply of Inventory:

Months supply of inventory illustrates the absorption rate of homes on the market and is used as an indicator of whether it’s a seller’s market or a buyer’s market. The lower the MSI, the further it tips to a seller’s market and vice-versa. In June single family homes had just over 3 months of inventory, up 26% compared to the previous year. Condos and lofts had just over 5 months of inventory, up a whopping 82% compared to the same month last year.

Average Days on Market:

Single family homes spent an average of 25 days on market before accepting an offer, up 13.6% compared to last June. Condos and lofts spent 32 days on average, up 14.3%.

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.