Real Estate Market Update for August 2020
What’s New in San Francisco Real Estate
Analytics and charts from Compass
July leading into August has been a busy time in the San Francisco market. An influx of new listings has created the highest volume of listings in the past eight years. Even with all this inventory, median home prices are holding steady and increasing slightly from last year. Home sales are also similar to last year, and the median days on market is still relatively low, at 15 days. We are seeing less overbidding and more price reductions, particularly for condos, than in previous years.
Market Snapshot for July
Median Home Sales Prices
Within San Francisco, supply and demand conditions have diverged dramatically between house and condo markets, with the latter being weaker.
On a 3-month rolling basis, SF median house sales prices are as high as they’ve ever been. The median condo sales price, while not particularly low, has been running lower than the highs of last year.
Supply and Demand Indicators
The following three charts provide insight into the changing supply and demand in the market.
San Francisco County Market Trends
The number of listings going into contract has been increasing, but at a much lower rate than inventory is growing.
Unit Home Sales by Month
Sales volume is steadily climbing, but is still far below the high points of the past two years.
Price Reductions on Active Listings
Price reductions have increased in recent months, primarily for condo listings.
Diverging House and Condo Market Conditions
As illustrated in the following two graphs, the supply of listings on the market is at its highest point in eight years. In particular, condo inventory is spiking up significantly. As a market softens, correct pricing becomes increasingly critical for sellers. In a hot market, buyers compete for listings; in a cooler market, sellers compete for buyers.
Average Days on Market
While average days on market has climbed in recent months, the days-on-market figures are not high. Listings that are selling (and that are listed at the right price!) are going into contract relatively quickly. Accurate pricing is more important than ever.
Less Overbidding
The amount and magnitude of buyers overbidding asking prices is considerably lower from levels seen in the past six years. This is largely due to the change in showing procedures as a result of the shelter-in-place rules. In addition, as inventory increases, buyers see a reduced necessity to compete with each other.
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.
