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

July 2022 San Francisco Real Estate Update

San Francisco Real Estate

June appears to be a turning point in the real estate market. Inflation grew as did increased warnings of a coming recession. The Fed increased interest rates by three quarters of a point, the largest increase in three decades. All of this put a pause on the real estate market as buyers (and sellers) waited to see what would happen and to psychologically at least adjust to the higher rates. Not helping, particularly here in San Francisco and the greater Bay Area, was a significant downturn in tech stocks. Some buyers were knocked out of the market as the higher interest rate thwarted their ability to get a loan. Others were loath to cash out their stocks needed for the down payment.

According to California Association of Realtors, the number of home sales in California dropped 21% in June, and median prices dropped 4% compared to May. San Francisco also saw a slight decline in median prices for single family homes.

It’s important to note that one month of data does not a trend make. While it’s pretty clear that the Fed will increase rates again this month to combat inflation, it’s still unclear as to whether we are in a recession or if a recession is inevitable later this year.

Read on to see the latest stats in the San Francisco real estate market.

Median Price:

For the first time in perhaps a decade, the median price for a single family home in San Francisco slipped year-over-year in June 2022. The median price was also down compared to last month. Amid the highest inflation rate (at that time), a 3/4 point interest rate increase from the Fed, and tech stocks declining, it’s not really surprising that the market hiccuped in June. There was more positive news from the condo segment of the market, where median prices grew almost 2% year-over-year, and were also up slightly compared to May.

 

New Listings:

While prices may have wavered, our continuing dearth of inventory continued in June and perhaps held the market up in spite of less demand. New single family home listings were down 37% compared to June 2021. New condo listings were down over 40%.

 

Active Listings:

Like new listings, active listings were down compared to June of last year for both single family homes and condos in San Francisco. Active listings are the number of listings still on the market for sale at the end of the month. Active single family homes were down over 35% while condos were down almost 20% year-over-year.

 

Sold Listings:

Overall sold listings were down for both single family homes and condos. The number of single family homes sold in June was down over 25% compared to June last year. The number of condos sold were down 36% year-over-year.

 

Percentage of Properties Sold Over List Price:

More than 87% of single family homes sold for over their list price in June, up almost 5% from last June. Almost 60% of condos sold over their list price, up over 7%.

 

Average Percentage of List Price Received:

The average percentage of list price single family homes received was almost 117%. But that’s up less than 1% year-over-year. Condos sold on average for 105.5% of list price, with no change when compared to last June.

 

Average Days on Market:

Single family homes spent an average of just 16 days on the market in June, down almost 6% compared to last June. Condos spent 33 days on average on the market before accepting an offer, down about 3% year-over-year.

 

Months Supply of Inventory:

In June, single family homes had just 1.8 months of inventory, down 25% compared to last June. Condos had just 3.6 months of inventory, down more than 12%. MSI refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. For a balanced market, MSI would be about 6 months.

The fine print: All information deemed reliable but not guaranteed or warranted. Data comes from the MLS so does not include off-market and most new construction condo sales. The Bay Area 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.