Real Estate Market Update for July 2020
What’s New in San Francisco Real Estate
Analytics and charts from Compass
It’s been a busy month for the San Francisco real estate market! Despite the ongoing health and economic crisis brought on by COVID-19, the market made a large recovery from the steep declines earlier this spring.
The median house price hit a new monthly high in June of $1,800,000. High-end houses, in particular, have seen very strong demand in the San Francisco, which helped to push the median price upwards. The condo market has been weaker than the house market, as measured by both supply and demand metrics and median sales price.
Listings Accepting Offers
The first chart below illustrates the big rebound in buyer demand, as the number of listings accepting offers in June 2020 rose slightly higher on a year-over-year basis. Of course, closed-sales volume—a lagging indicator for confirming long-term trends—was down significantly in Q2 due to the shelter in place order.
House Sales Outperform Condos
As illustrated below, the house market (blue line) has performed much better than the condo market (purple line).
Median Home Sales Prices
The charts below offer three different perspectives on changes in median home sales prices—annual, monthly, and quarterly. While the median house price has hit a new peak, the median condo price has declined from its 2019 high.
Average Days on Market
Average days on market remained relatively low in Q2, though higher than Q2 in 2018 and 2019.
List to Sales Price
The average overbidding percentage declined to zero in Q2 as showing procedures and the offer-making process have been severely affected by shelter in place. These days, we are more likely to see houses listed at value, rather than listed at lower prices to drive competition. This doesn’t reflect a change in demand or value, but illustrates how different pricing strategies and the lack of traditional open houses are changing the bidding process.
Median Home Sales by District
A review of annual and 2020 YTD median home sales prices in some of the largest districts in San Francisco. Changes in median sales price are not perfect indicators of changes in fair market value, as they can be affected by a number of other factors.
Mortgage Rates Continue to Drop
We’re seeing mortgage rates dropping to historical lows, below 3% for a 30-year loan, begging the question, just how low can they really go? Lenders are overwhelmed with new loan applications and refinancing applications. With so much demand, prospective buyers would be wise to get their financing in order as soon as they can, and allow for additional time for loan approval.
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.
