What’s New in San Francisco Real Estate
Analytics and charts from Compass
With sales figures reported for the month of May, we are seeing a slight cooldown in the market. Sales are declining while active listings and price reductions are increasing a bit. That said, particularly in neighborhoods with high demand, homes are selling and still selling quickly for well over asking prices.
Median sales prices and year-over-year appreciation rates remain high. Well prepared, listings that are beautifully staged and priced right will have an increasing advantage as buyers are more circumspect.
San Francisco Home Price Appreciation
Despite the decline in sales, year-over-year appreciation continues to increase for homes in 2022.
Year-Over-Year Appreciation Rates Since 2020
Since May of 2021, median house sales price appreciation rates have remained fairly stable, typically between 11-15%.
Condo Price Appreciation
Following a dip in median price after the pandemic hit, condo median sales price appreciation rates are returning to pre-pandemic levels. Median condo sales prices have been at around 7% the last two months.
New and Active Listings
New listings coming on market is leveling off, with new listings this May increasing by 3% from last year.
Comparing the figures from May 2022 to May 2021, the number of active listings on any given day was up 23%.
Listings Accepting Offers - Longer-Term Trends
While April and May this year saw atypical declines in the number of listings going into contract (as well as a year-over-year decline), these dynamics were largely concentrated in the condo market.
Monthly Home Sales Volume
Year-over-year, the number of home sales was down 8%, while home sales were up 8% and condo, co-op and TIC sales were down 17%.
Price Reductions on Active Listings
Reflecting a shift in market dynamics, price reductions in May 2022 were up 50% compared to May 2021.
Overbidding List Prices
The majority of homes being sold are continuing to sell for over the asking price, in spite of sales dropping in recent months.
Mortgage Interest Rates
After little movement the last few weeks, mortgage rates rose again the week of June 9 to 5.23% in response to incoming inflation data. And after the Fed raised the interest rates last week, as of June 16, Freddie Mac reported average mortgage rates for 30-year loans rose to 5.78%.
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.
