New Listing Market Watch - fewer condo price reductions

New listings of single family homes stayed steady during the last two weeks compared to the previous two week period (131 to 128) and the same two week period last year (131 to 138).  On the condo side, new listings were down compared to the previous two week period (142 to 175) and compared to the same two week period last year (142 to 175).

However, the number of those same single family homes that went into contract during the same period is down sharply compared to the previous period (7 vs 24) and compared to the same period a year ago (7 vs 18).  Condos saw 15% of new listings go into contract (the same as the previous period) and up compared to a year ago (10%).

There was an increase in the number of condo price reductions compared to the previous period (27 vs 20) while single family homes stayed virtually the same (17 vs 15).  However, compared to a year ago the number of condo price reductions is down sharply (27 vs 47) while reductions on single family homes rose (17 vs 11).

New Listing Watch - strong market indicators

The number of new listings is up during the past two weeks compared to the previous period (128 new single family home listings vs 106 two weeks ago and 175 vs 132 new condo listings).  However, this increase is somewhat lower than a year ago.  In total there were 303 new listings compared to 238 two weeks ago and compared to 329 a year ago.

Of those new listings a much higher percentage went into contract during the same period (19% of new single family home listings and 15% of new condo listings compared to 6% and 6% for the prior period.  It's also higher than the same period a year ago (12% and 11%).

The number of price reductions during the last two weeks compared to the prior period was flat for single family homes (15 vs 13) and down for condos (20 vs 24).  Compared to the same period a year ago the number of price reductions was down significantly (15 vs 20 for single family homes and 20 vs 34 for condos).

Higher 1st Quarter 2017 Sales in San Francisco, part 2

In the previous post we noted that the number of residential sales is up comparing the 1st quarter 2017 vs 2016.  At a more granular level* here's what we see:

The number of sales is up in four of the five configurations we track (1st qtr 2017 vs 1st qtr 2016):

The average sales price is up in three of the five configurations:

The median sales price is up in two of the five configurations:

Average days on market is up in four of the five configurations:

And finally, the premium (sales price over asking price) is down in all five categories:

What do these numbers tell us?

• The residential real estate market in San Francisco is still strong with the number of sales increasing and average prices increasing.
• There is increasing pressure on lower priced properties (median price down).
• There's slightly more caution in the market with DOM (days on market) increasing and premiums dropping slightly.

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* We track five separate configurations of homes for our monthly reports:
2br/1ba single family homes;
3br/2ba single family homes;
1br/1ba condo/TICs;
2br/1ba condo/TICs; and
2br/2ba condo/TICs

Those five configurations make up over 60% of residential sales in San Francisco.

Higher 1st Quarter 2017 Sales in San Francisco, part 1

Recently there have been several items in other blogs and publications suggesting that the number of transactions in San Francisco residential real estate is on the decline signaling a possible downturn or bursting bubble.

Statistics from the SFMLS show that the number of residential property sales (single family homes, condos, TICs, co-ops, but not including multi unit buildings) first quarter sales did decline in 2015 and 2016 an average of 9%/year (compared to the previous year) but are up almost 5% in 2017.

And our latest quarterly report of sales where we track five separate configurations of homes (eg. 2br/1ba single family homes; 3br/2ba single family homes; 1br/1ba condo/TICs; 2br/1ba condo/TICs; and 2br/2ba condo/TICs) average sales prices in the first quarter of 2017 are higher than they were for the same quarter in 2016 in 3 out of the 5 configurations.  See next post for details.

(BTW, those five configurations make up over 60% of residential sales in San Francisco).