What’s New in San Francisco Real Estate
Analytics and charts from Compass
During the first quarter of 2022 sales were robust for all property types in San Francisco. However, the supply of houses in particular remained very low. The second quarter is typically the most active selling season of the year; it is yet to be seen if recent interest rate changes and other economic factors will impact the demand for homes in San Francisco. From what I observe, working with buyers and sellers in the market every day, demand has not diminished, especially for single-family homes.
New Listings Coming on Market
The number of new listings coming on the market has increased rapidly as we move into the peak spring selling season.
Active Listings on Market
The chart below highlights listings in March over the past few years. While the number of active listings is higher than before the pandemic, this is largely driven by the increase in condo listings. The inventory of active house listings is running lower.
Listings Pending Sale
Supply and Demand Dynamics
As of April 1, the active listings on the MLS equaled two months supply of inventory. Anything under 3 months of inventory is typically considered a “seller’s market.”
Home Sales Volume by Month
House Price Trends
Condo Price Appreciation
Due to a larger supply of condos in the market, median sales prices are slightly lower, although still up 4% from the first quarter of 2022 compared to the first quarter of 2021.
Sales Price to List Price
Overbidding percentages for houses continued to be much higher than for condos.
Average Days on Market by Quarter
Average days on market decreased significantly for both houses and condos when comparing the first quarter of 2021 to the first quarter of 2022.
Mortgage Interest Rates
Mortgage rates continue to climb, with the average weekly 30-year interest rate hitting 4.67% at the end of March, representing a 50% increase from the end of 2021. Largely driven by first-time home buyers, demand for homes still remains high, even in spite of increasing rates.
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.
