In the first six months of 2021 the San Francisco residential real estate market has performed outstandingly and with some record setting. There have been 3,677 closed sales, of which 1,399 were single-family homes and 2,278 were condos/TICs. 2013 was the last year where total residential closed sales established the previous high of 2,988 with 1,355 single-family homes and 1,633 condos/TICs (all numbers are for the first six months of the year).
Overall total closed sales for the first two quarters of
this year are about 23% higher than in 2013.
Single-family homes increased about 3% and condos/TICs had a whopping
increase of 39%.
It should be noted that San Francisco has built quite a few
mid- and hi-rise condo buildings since 2013 and, as our monthly statistics
derive from our MLS which historically does not include new construction units,
these numbers represent largely resales not initial sales of new construction
units.
Our single-family home market continues to set historic high
average selling price almost monthly for homes priced below $3.5 million. In June 2/1 and 3/2 homes had average selling
prices of $1.511 million and $1.864 million respectively with days-on-market of
17 and 11 days and premiums (selling price divided by asking price) 122% each.
Based on the number of sales, the star performer of the year
so far has been the condo segment. That
market has had approximately 3 months of available inventory with potential
buyers having plenty of choices. As would
be expected average selling prices saw some declines. For 1/1 (bedroom/baths), 2/1 and 2/2 configuration
condos which we survey monthly June average selling prices were $826k, $1.203
million, and $1.390 million respectively.
When compared to historic high prices (established in 2019) which were
$871k, $1.174 million and $1.463 million, there was a 5% decline, a 2% increase
and 5% decline respectively for those three configurations.
It appears the market will remain strong for the rest of
2021. Rising interest rates are likely
to affect the sub $1million market rather quickly. Rising interest rates are less likely to
affect single-family home prices since only a small percentage (6%) of single-family
homes sell for under $1 million in the San Francisco market.
We also note that 53% of all single-family home sales closed
between $1million and $2.5 million. For
condos/TICs 51% of closed sales were in that same price range.
