Real Estate Market Update for July 2021
What’s New in San Francisco Real Estate
Analytics and charts from Compass
With limited inventory, high buyer demand continued to dominate the second quarter of 2021. In a sign of a return to the usual market patterns, activity did begin to slow down in June, a typical seasonal trend. A positive indicator for a return to pre-pandemic normal is that demand for rentals in San Francisco increased in the past quarter. According to data compiled from Cushman and Wakefield, of the 140 major companies the firm tracks that are mostly based in San Francisco, 70% indicated they will have returned to the office in some capacity by July 1. That figure is expected to jump to 78% by the end of the year.
House and Condo Sales by Month
Condo sales hit an all-time high in the spring market this year, while house sales continued their upward trend.
House and Condo Price Appreciation
Price appreciation for houses soared to new highs, and price appreciation for condos recovered to pre-pandemic levels in the second quarter of 2021.
New Listings Coming on Market
As illustrated in the chart below, new listings dipped slightly in June, reflecting the typical summer market slowdown.
Active Listings - Houses and Condos
Median House Price Changes
Building off of increased buyer demand, median house sales prices are surging back to pre-pandemic levels.
Market Snapshot
House & Condo Sales by Neighborhood
Sales to List Price Differences by Neighborhood
Refinance Surcharge to be Eliminated in August
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, recently announced that the controversial “adverse market fee” will be dropped as of August 1, 2021.
Announced last summer, the surcharge (which increased the cost of a refinance by 0.5%) was intended meant to help offset pandemic-related losses for Fannie Mae and Freddie Mac, two government-sponsored enterprises that buy most U.S. home loans.
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.
