Real Estate Market Update for November 2021
What’s New in San Francisco Real Estate
Analytics and charts from Compass
As typically happens this time of year, as we move into the holiday season, the market slows down. New listings will decline and bottom out in December, and sales volume will lag at the end of the year. The coming months can offer opportunities for buyers to make aggressive offers on listings that are still lingering on the market.
Home Sales and New Listings
As illustrated in the chart below, new listings rose in September, and dropped off in October. The increase in sales volume reflects the listings sold in September, when inventory was higher.
Home Price Appreciation since 1990
The following chart illustrates house price appreciation indexed to the first quarter of 2000 (equal to 100 on the chart); for example, the fall 2021 reading of 398 reflects a 298% increase since the indexed year of 2000.
Median House Sales Price Trends by Neighborhood
Median Condo Sales Price Trends
Condo median sales prices have rebounded this year, and are almost back up to their peak value. Overall, median sales prices for condos did not have the same high appreciation rates houses have seen since the pandemic started, but they are trending upwards.
Mortgage Rates, Inflation and Debt Service
On November 4, Freddie Mac reported the weekly average interest rate for a 30-year mortgage at 3.09%, and a rate of 2.35% for 15-year mortgages. While an increase from the all-time low of 2.65% for a 30-year rate in January 2021, rates still remain relatively low compared to previous years.
A positive economic indicator is the low level of debt service payments as percentages of disposable income, which dropped to historic lows through the first quarter of 2021. Those rates started to increased in Q2 2021, but remained exceptionally low.
The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information.
