Tag: san francisco home buying san francisco home selling

In August rising interest rates and falling stock prices, particularly in the tech sector, resulted in decreased demand and cooling home prices in the San Francisco real estate market. Fewer homes selling means fewer are selling for over their asking price (though many still do), causing some homes to stay on the market longer. While rising interest rates can knock some buyers out of the market due to affordability with higher rates, it offers an opportunity for buyers who are hoping for less competition. While it’s still a seller’s market we do appear to be moving a bit toward a more balanced market.

Prices typically rise in the spring and then stabilize in the summer, so it may be too soon to say just how much the market is cooling. Moving into September, though, we are already seeing an influx in inventory so most are predicting that the market cooling will continue.

Below are the market statistics for August 2022.

Median Sales Price:

The median price for a single family home slipped almost 12% year over year to $1,625,000. Condo prices slipped almost 16% to $1,010,000.

Sold Listings:

As demand lessens, the number of sales has also dropped. Single family home sales were down 28% year-over-year, while condos were down 33% compared to last August.

Percentage of Properties Sold Over List Price:

Three-quarters of single family homes sold for over their list price in August, down 10% compared to last year. Thirty seven percent of condos sold for over their list price, down 34% year-over-year. Cooling demand means less competition, though there are still some homes that are selling well over their asking price while others receive just one or two or even no offers.

Average Percentage of List Price Received:

On average, single family homes sold for 108% of their list price, down 6.4% compared to August 2021. Condos sold for an average of 100.8%, down 3.5% year-over-year. For serious buyers who are still in the market, it’s an opportunity to  take advantage of less competition.

Average Days on Market:

In August, single family  homes spent an average of 26 days on the market before accepting an offer. This is up 4% compared to last year. Condos spent an average of 50 days on the market, up 28% year-over-year.

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.

The San Francisco real estate market continued the cooling that began in June. Median sales prices were down year-over-year, as was how much buyers needed to or were willing to overbid to get a home. The average days on market also increased, while the number of sold listings fell..

The cooling, though, is not definitive across the board. While many homes are selling just around, or even below, their asking price others are selling for far above their list price. Some of this is due to shifts in pricing strategy. Changing is  the game plan of under pricing a property by ten to twenty percent to foster more competition and more offers. This is particularly true in the condo and TIC markets, but even single family home sellers have been adopting more transparent pricing. This is good news for buyers who in the past have been frustrated with this practice.

Median Price:

The median sales price for a single family home dropped again in July compared to July 2021, decreasing over 9% year-over-year. Condos also decreased almost 3% compared to last July.

New Listings:

New listings were also down year-over-year in July, a month that is typically among the slowest in San Francisco real estate. This could be just a rightsizing after the past two pandemic years, which saw higher than normal inventory in both July 2020 and July 2021. This July’s new listing numbers are more in line with pre-pandemic July data in San Francisco. New single family homes were down almost 45% and condo listings were down about 27%.

Active Listings:
Like new listings, active listings were also down in July. Active single family homes were down 40% while condo listings were down 27%.

Sold Listings:

Fewer homes sold in July 2022 than they did in the same month last year. Single family homes sales were down almost 30% while condo sales were down over 40%.

Percentage of Properties Sold Over List Price:

A smaller percentage of homes sold for over their list price in July. Whereas about 85% of single family homes were selling over their list price in 2022, in July only 78% sold over their asking price. That’s also down 7% compared to last July. Condos, of which more than half were selling over their list price this year, had just 40% sell over list price in July. That’s also down almost 20% from the same month last year.

Average Percentage of List Price Received:

Single family homes sold for an average of 111% of their list price in July, down more than 6% year-over-year. Condos sold for an average of 102% of their list price, down almost 3% compared to July of last year.

Average Days on Market:

Single family homes spent an average of 20 days on the market in July, up 20% compared to the same month last year. Condos spent an average of 47 days on the market before accepting an offer, up almost 24% year-over-year.

Months Supply of Inventory:

Single family homes had less than 2 months of inventory in July, down 32% compared to last July. Condos had a little over 3 months of inventory, down 13% year-over-year.

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.

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.

For so many reasons, we could sum up 2021 as another year-long dumpster fire. But that’s not so for the San Francisco real estate market, which continued to be red hot. Single family homes were the hottest ticket in town, with buyers clamoring to overbid to get in the door. The condo market, which has struggled since the onset of the pandemic, continued to recover in 2021 and is back on the rise, particularly in the $2M+ range which saw the biggest price gains. Lower priced units, under $1.M actually decreased, which could be a combination of buyers requiring more space now that Covid has changed how many of us work and also that there are fewer properties still selling for under $1M in San Francisco. Here are a few stats from 2021.

Median Sales Price:

The median price for a single family home in San Francisco grew 12% compared to 2020, reaching another new high of $1,800,000. Condos saw an almost 3% increase compared to the previous year, rebounding to $1,225,000.

New Listings:

New listings were down across the board in 2021. New single family homes were down 3% year-over-year, new condo listings were down almost 2%. This led to increasing prices due to the imbalance of supply and demand.

Active Listings:

It’s no surprise that active listings, those homes available for sale at the end of a month, were also down. With fewer new listings coming on the market but equal or greater demand, competition in some cases was fierce and did not leave much on the market by month’s end. Active listings for single family homes was down 20%, while condos were down almost 12%.

Sold Listings:

Another yard stick showing how much more quickly properties were selling in 2021 vs the previous year, over 3,000 single family homes sold, up almost 24%. There were almost 4,000 condos that sold in 2021, up over 60% year-over-year.

Percentage of Properties Sold Over List Price:

Almost 79% of single family homes sold for over their list price in 2021, up over 20% compared to the previous year. Single family homes have been the hottest ticket in town, so that’s no surprise. About half of condos sold for more than list price, up 23% year-over-year. While the condo market took a hit in 2020, it has been creeping back up to a seller’s market.

Average Percentage of List Price Received:

On average, single family homes received about 115% of their list price in 2021, up almost 7% year-over-year. Condos averaged 104% of their list price, also up almost 3% compared to 2020.

Average Days on Market:

Single family homes spent an average of 22 days on the market before accepting an offer in 2021, down 8.5% compared to 2020. Condos again spent an average of 41 days on the market last year, the same as in 2020.

Months Supply of Inventory:

As we’ve seen for most of the past several years, inventory remains low particularly in the single family home market where demand has ramped up even more over the past couple of years. MSI for 2021 was 2.3 months, down 40% compared to 2020. The condo market experienced a steep rise in available inventory in 2020 but in 2021 that was reduced 40% to 4.2 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.

December was an interesting month for the San Francisco Real Estate market. Because of the upset of typical seasons in 2020, the data comparing year-over-year may seem skewed. In 2020 the December market was much busier and vibrant than it usually is, due to the fact that the Spring and Summer seasons were interrupted by the pandemic.

Median Sales Price:

The median price for a single family home was $1,700,000 in December. This was up 9.7%, yet down slightly from November’s $1.9million. Typically December is slower and prices lower particularly because most of the higher end of the market takes a break for the holidays.

The median price for a condo rose 18.5% year-over-year to $1,300,000 in December. Condo prices also increased compared to November. As we’ve been seeing this year, the higher end of the market is experiencing the most growth (+ 9% for $2million or above properties) and less growth or even declines in the lower end of the market (-9% for condos under $750K). As prices continue to rise, there are just fewer condos for sale in the lowest price ranges, but also there is a marked lack of demand for smaller units.

New Listings:

New listings were down in December for both single family homes and condos. Single family homes were down 62% compared to last December, while new condo listings were down 52%. Fewer new properties come to market in December, though again 2020 was an outlier for typical seasons.

Active Listings:
Active listings were also down across the board in December. With much demand and fewer homes on the market, properties were snapped up quickly. Active single family homes on the market at the end of the month were down over 60%, while active condo listings were down over 50%.

Percentage of Properties Sold Over List Price:

Almost 80% of single family homes sold for over their list price in December, up 26% compared to 2020. Over 47% of condos sold for over their list price in December, up 62% year-over-year.

Average Percentage of List Price Received:

Single family homes on average sold for almost 115% of their list price in December, up 8% compared to 2020. Condos sold for almost 104% of their list price, up 4.5% year-over-year. When more inventory is available, such as last December, there is more for buyer’s to choose from and less of a need to offer far above listing price.

Average Days on Market
Single family homes spent an average of 30 days on the market, down 14.3% compared to December 2020. Condos spent 41 days on market on average, down over 30%.

Month’s Supply of Inventory:

There was just under a month’s supply of single family home inventory in December, down 68% compared to December last year. There was only 1.9 months of condo inventory on the market, down almost 69%. While December 2020 saw a busier than usual market, having under 1 or 2 months of inventory is pretty astounding.

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.

November 2021 was very different from November 2020. In 2020, Covid and the ensuing lock downs in March meant that there wasn’t a very brisk Spring season for San Francisco real estate. While there were still buyers buying and sellers selling, many chose to wait it out. By July inventory started to rise, and by November there was 4-1/2 months of single family home supply and 10 months of condo inventory!

I mention this to help put into perspective the data below. While the San Francisco real estate market continued to experience a very healthy year so far, comparing data from 2020 month to month is a bit skewed as typical seasons were off in 2020.

Median Sales Price:

The median sales price for a single family home grew 17% year-over-year to $1,900,000 in November. The median price for a condo in San Francisco grew almost 8% to $1,290,000. For both types of properties, the biggest gains were in the higher end of the market, above $1,750,000.

New Listings:

New listings were down significantly for both single family homes and condos in November. Again, this is due to the off year on seasonality in 2020. New single family home listings were down over 50%, while new condo listings were down 30%.

Active Listings:

Active listings, listings that remain on the market at the end of a given month, were also down for both single family homes and condos in November. This speaks both to the inventory shortage that we continue to experience, as well as that there were so many listings on the market in general in November 2020. Active listings for single family homes were down 49% while condos were down 47% year-over-year.

Percentage of Properties Sold Over List Price:

Since January of 2021 there has been a steady rise in the number of properties sold over list price. Over 79% of single family homes sold for over their list price in November, a 29% increase year-over-year. Almost 57% of condos sold for more than their asking price, up over 75% compared to November last year.

Average Percentage of List Price Received:

Single family homes sold for an average of almost 115% in November, an over 8% increase compared to the same month last year. Condos sold for an average of almost 105%, up almost 5% year-over-year.

Average Days on Market:

Single family homes spent an average of 20 days on the market before accepting an offer, down over 39% year-over-year. Condos spent an average of 37 days on the market, down almost 25%

Months Supply of Inventory:

Given the difference in inventory this November when compared to November 2020, it’s no surprise that it’s fallen precipitously year-over-year. Single family homes had just 1.6 months of inventory in November, down 59%. Condos had less than 3 months of inventory, down over 69%.

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.