Real Estate Market Update for May 2020
What’s New in San Francisco Real Estate
Analytics and charts from Compass
With virtually every business sector experiencing a slowdown, the shelter-in-place caused a significant drop in real estate activity. Spring is usually the busiest time of year for real estate.
However, there are some positive signs. Since bottoming out in early April, real estate activity has been picking up considerably. More listings are coming on to the market and eager buyers are anxious to find a home.
As shelter-in-place restrictions are gradually eased, real estate activity should continue to increase. In addition, home prices have seen no declines; but a fair proportion of the sales behind April median sales prices still reflects offers accepted prior to shelter-in-place.
And lastly, some good news for buyers and homeowners looking to refinance— interest rates hit new historic lows. According to Freddie Mac, average rates for a 30-year mortgage dropped to 3.23% on April 30, 2020.
Market Dynamics by Week
The only way to clearly perceive the recent changes in the market—sudden plunge and the beginning of recovery—is by looking at weekly trends in buyer and seller activity. These are illustrated in this first chart below
Year Over Year Changes in Median Home Price
Generally speaking, the first months of 2020 have been characterized by year-over-year increases in median home sales prices across the Bay Area.
Longer-Term Trends in Median Home Prices
Year-over-Year Monthly Activity Comparisons
The next series of charts reflects the dramatic changes in market dynamics by month, as compared to spring 2019.
Mortgage Interest Rate Trends
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.
