The median sales price hit an all-time high for both single family houses and condo/loft/TIC’s in May. The incredibly tight supply coupled with strong demand pushed the prices up and the overbids as well. Single family homes sold at a median overbid of 114.7%, the highest since October, 2015. Condos sold at a median of 103% of list price, the highest overbid percentage since May 2016.
As we discussed last month, the number of new single family home listings coming on the market was down sharply in April, 25.5%, and we saw that repeated again in May with a 12% year-on-year drop.
Likewise, the precipitous decline, 33.5%, in new condo/loft/TIC listings coming on the market in April, was followed by a 23% drop year-on-year for May. This is the third double-digit monthly year-on-year decline for new condo/loft/TIC listings this year.
The total number of single family homes sold was up 5.5% in May while condo/loft/TIC sales were unchanged.
Inventory stands at 1.8 months for single family homes, down 25% year-on-year, and 2.3 months for condo/loft/TICs, also down 25%.
What’s the translation of all of this? San Francisco continues to be an extremely competitive and “tight” housing market with way too little supply to satiate the incredible demand…especially for “affordable” (under $1.5M) single family homes. Also, check the market cycles…hot in Spring and Fall, cool in Winter and Summer.