A look back over the last 3 quarters

 Our San Francisco residential real estate market for the first three quarters of 2021, in spite of all the COVID issues, is having one of the best years in the last 10 for total sales.  Reviewing the variety of reports we do there are a few items that stand out.

For single family homes 53% (1,130 units) of closed sales in the first three quarters had average prices between $1 and $2 million.  Another 15% (322 homes) closed between $2 and $2.5 million.  Followed closely by 275 homes (13%) between $2.5 and $3 million.

Similarly, in the first three quarters of 2021 52% of condos/TICs sales (1,670 units) were between $1 and $2 million.  The next largest group, 18% (582 units) was between $800k and $999k.  16% (536 units) closed between $500k to $799k.

Inventory continues to be plentiful for condos/TICs.  As of 10/10/2021 there was approx. 3.8 months of available inventory (911 units) with an additional 105 in contract and 320 units pending.

It’s a more mixed message for single family homes where there were 325 active listings with 35 in contract and 285 currently pending.  This represents about 1.6 weeks of inventory.  For the two configurations that we track (2 bedroom, 1 bath and 3 bedrooms, 2 baths) there is 4 weeks and 5 weeks of inventory.

Average selling prices for 2/1 and 3/2 single family homes continue at record highs with 2/1 homes averaging $1.33 million and 3/2 averaging $1.75 million.

Annual average selling prices for the three configurations of condos/tics we track (1/1, 2/1 and 2/2) are $825k, $1.14 million and $1.41 million respectively.  These averages are down 5%, 3% and 4% compared to previous highs reached in 2019.

As might be expected, with almost 3.8 months of inventory, these average selling prices will be constrained through the end of the year. 

By the way, TICs as a percentage of condo/TICs sales is now about 6% -- the lowest percentage since 2002.  In most years TICs make up 8-10% of the combined condo/TIC market.  This reduction in market share seems to be mostly the result of the large influx of condo inventory in the past 2-3 years.