Quick Take:
- Median sale prices continued to increase throughout San Francisco in the month of June.
- Inventory continues to be a huge issue in San Francisco, as levels continue to dwindle.
- Due to the inventory constraints in the area, listings are scooped up off the market at breakneck speed.
Condo values have increased by more than 10% over the course of the past year
Median sale prices have been on the rise over the past few months in San Francisco, and there was no exception in the month of June. Single-family home median sale prices rose by 4.42% on a year-over-year basis, while condo median sale prices rose by 10.52%. Additionally, the average single-family home sells for 112% of the original listing price, while the average condo sells for a slight discount, at just 99.7% of the original listing price.
Inventories continue to dwindle, as homeowners are reluctant to sell their properties
This rise in prices that we’ve seen has been fueled by a lack of new supply hitting the market. Each and every month, we’ve seen inventories slowly get bought up and seemingly taken off the market for good. In the month of June, we saw 7.87% fewer single-family homes on the market when compared to this time last year. When we turn to the condo market, we see 18.77% fewer listings on the market at the end of June.
San Francisco remains one of the few markets where we’re seeing listings spend less time on the market
As you might expect, given the rising prices and inventory issues that we’ve been observing throughout San Francisco, listings are being bought up incredibly quickly. The average single-family home spends just 14 days on the market, while the average condo spends 31 days on the market. These figures represent a year-over-year decrease of 6.67% in the single-family home market and no change in the condo market.
The single-family home market continues to be seller-dominated, while buyers have a bit of leverage in the condo market
When determining whether a market is a buyers’ market or a sellers’ market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller’s market, whereas markets with more than three months of MSI are considered buyers’ markets.
The single-family home market in San Francisco has been dominated by sellers for quite some time, and that did not change in the month of June, with the area having just 1.5 months’ worth of inventory on the market. In the condo market, buyers are slowly losing their bargaining power as inventory levels slowly dwindle away over time. However, there’s still some room to negotiate in the condo market, with 3.5 months of supply listed for sale.
Want to know more? Our full report dives deep into the numbers. Follow us on social media @thefrontsteps for the latest market insights.
Thinking of buying or selling? Our team of experts can help you navigate the market. Contact us today for a free consultation!
Curious about market updates in other Bay Area areas? Click the button below for insights specific to the neighborhoods you’re interested in.