Single family home prices nudged up a bit year-over-year while condo and loft prices remained flat in August. New listings for single family homes decreased compared to last year and last month, but they also saw an increase in active listings by the end of the month. Meanwhile condos and lofts increased for both. As more inventory comes on the market more homes are selling closer to their asking price and fewer are selling for gang-busters over their list price.
But the "big story" I'm asked a lot about is the condo market. August marked the third month in a row that condos and lofts saw 6 or more months of inventory. Six months is typically a sign that we're venturing out of a seller's market and into a more balanced-to-buyer's market. What does this mean? If you're a buyer it means you may have a bit more negotiating power. If you're a seller it means you have to practice discipline around pricing and patience. Pricing because you may not be seeing multiple offers in a handful of days like you may have in the past, so pricing appropriately is key. And patience because while properties are selling it could well take a little more time to get there. For both buyers and sellers it's important to note that San Francisco is comprised of many "mini-markets" that we call subdistricts, and not all subdistricts are experiencing equal market conditions. See which subdistricts are being affected the most, as well as all of the other stats below.
Median Sales Price:
Single family home prices increased 3.3% year-over-year in August to $1,656,000. Condo and loft prices stayed steady, decreasing 0.4% to $1,275,000.
Single family homes saw a 15.8% decrease in new listings compared to the same month last year, while condos and lofts saw a 43% increase.
Active listings increased for both single family homes and condos/ lofts in August. Active listings are the number of listings available for sale at the end of the month. This seems to indicate (along with average days on market) that homes are staying on the market slightly longer now. Single family home active listings were up 17% while condos and lofts increased over 95%.
Percentage Sold Over List Price:
As more inventory comes on and stays on the market longer, buyers have more options and in some cases a little more negotiation power. Sixty-six percent of single family homes sold for over their list price in August, down 19% year-over-year. Just under 35% of condos and lofts sold over their asking price, down almost 41% compared to last August.
Average Percentage of List Price Received:
On average single family homes received almost 108% of their list price in August, a decrease of 6.6% compared to the same month last year. Condos and lofts received 100.5% of list price, down 5.4% year-over-year.
Month's Supply of Inventory:
Single family homes had 3.6 months of inventory in August, up 28.6% compared to last year. Condos and lofts had 6.8 months, up 126.7% and making this the third consecutive month with more than 6 months of inventory.
Subdistricts with High MSI:
While the condo market overall had been slightly cooling pre-pandemic, since the pandemic began it has softened much more. But not all areas of San Francisco are equal in this regard as some areas of San Francisco are seeing more movement than others. In August, 22 subdistricts has 6 or more months of inventory, about 25% of all subdistricts. For example, the swath of the City that encompasses South of Market (SoMA), South Beach and Yerba Buena has experienced an oversupply of homes come on the market. Much (though not all) of these areas have a number of larger, newer construction condo buildings that attracted buyers due to among other things proximity to tech companies, downtown, bars and restaurants, and the amenities these projects offered. Much of these closed down at the onset of the pandemic, making these less of a priority to people who now sought outdoor space and fresh air. Van Ness/ Civic Center's proximity to Hayes Valley, the Opera and other cultural hotspots has experienced a similar fate. (Note: these are just a couple of examples and not an exhaustive list. If you're interested in learning about a specific district or subdistrict please reach out to me).
Average Days on Market:
Single family homes spent an average of 24 days on the market, down 4% year-over-year. Condos and lofts averaged 39 days, a 21.9% increase compared to last August.
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.