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.
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