The number of San Francisco residential closed sales through May 31 of this year shows a decline of 15% with single family homes down 7% and condos/TICs down 19% when compared to the first five months 2021. (2021 was the best year for total sales since 2004).
Demand for single family homes remains strong and average
selling prices remain at historic highs for 2bed/1bath and 3bed/2bath
configurations we survey monthly. In the
last three months each configuration has shown a decline in the average selling
prices – 2/1s by 5% and 3/2s by 12%.
For the three configurations we survey of condos/TICs, 1/1s
are down 9%, 2/1s down 7% and 2/2s down 9% over the last three months.
As of 6/6/22 there is approx. 6 weeks of available inventory
for all single family homes and about 11 weeks for all condos/TICs.
Much of the decline in selling prices could be anticipated
given the number of available properties.
For example, our condo/TIC inventory has reached about 11 weeks which
does not include new construction inventory which is not usually listed in the
MLS.
However, average sales prices for single family homes become
less predictable even as the inventory increases. It could be the decline in average selling
prices may be the result of rising interest rates or, perhaps, buyers’ agents
are advising against making aggressive offers.
34% of single family homes that closed this year through
5/31/22 sold at or above $2.5 million.
4% closed at or below $1 million.
15% of the condo/TICs closed at or above $2 million while 35% closed at
or below $1 million.
