What’s New in San Francisco Real Estate
Analytics and charts from Compass
Renewed interest in the market coupled with slightly lower interest rates buoyed sales in the month of August, which is typically a slower month for real estate. Sales data from August indicated a slight rebound in sales, although overall volume was still below last year.
The number of new listings in August was lower year-over-year, and the number of active listings for sale declined, although still higher than last year. Typically, new listings increase after Labor Day and September is the single month with the highest number of new listings, fueling the fall market.
Earlier this month, interest rates increased again and the stock market remains volatile. The possibility of an additional rate increase seems imminent as the Fed attempts to counteract inflation. The next two months activity will be a strong indicator of buyer and seller sentiment, prior to the mid-November to mid-January period, which is usually the slowest time for the market.
House Price Trends
Median home prices typically peak for the year in the spring, and sales in 2022 reflect this trend.
Condo Price Trends
New Listings Coming on Market
New listings coming on the market increased slightly in August, which is typically a slower time in the market.
Active Listings
As of September 1, 71% of active listings were condos, co-ops, and TICs. Year-over-year, the number of active listings on any day of the month was up about 23%, but has been falling steadily since June 2022.
Monthly Sales Volume
Year-over-year, the number of home sales was down 29% in August. However, home sales were up 5% from July 2022.
Listings Accepting Offers
The number of listings accepting offers was down 25% compared to this time last year.
Overbidding and Average Sales Price to List Price
While both condos and houses have seen declines since April, houses continue to have a much higher average overbidding percentage than condos.
Average Days on Market
While houses continue to have a much lower average days-on-market than condos, the numbers for both have been increasing since April.
Price Reductions on Active Listings
Price reductions fluctuate throughout the year, and are typically impacted by the economy and changes in the market. We anticipate seeing price reductions peaking again in October, before the typical mid-winter market slowdown.
Mortgage Rates
Mortgage rates rose again as markets respond to the possibility of the Fed implementing an aggressive monetary policy to counteract climbing inflation rates. The average rate on a 30-year fixed mortgage has hit 6% for the first time since 2008. In addition to the rates rising, the dispersion of rates has increased; borrowers can benefit from shopping around for a better rate between different lenders.
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.
