Taking Stock of the Post Labor Day Market

 The San Francisco residential real estate market remains quite active even though new inventory coming onto the market has slowed to numbers we usually don’t see until December.  There remains about four weeks of available single family home inventory as of 9/5/22 and condos/TIC inventory about eight weeks.  In addition there are 84 single family homes and 154 condos/TICs in the “coming soon” category.

Comparing closed sales for the first eight months of this year vs 2021 single family homes have declined by 14% and condos/TICs declined by 24%.  Overall residential sales declined by 20%.

Historic high average selling prices remain for single family homes priced below $2.75 million.  However, the condos/TICs segment has moderated.  For 1/1, 2/1 and 2/2 configurations* we survey each remains off their historic highs established in 2019.  1/1’s have gone from $871k to $824k,  2/1’s from $1,174k to $1,168k, and 2/2's from $1,463k to $1,429k (-5.4%, -0.6%. and -2.3% respectively).

This new market has much to offer for buyers and sellers.  Inventory remains relatively stable and consistent – 1 month for single family homes and 2 months for condos/TICs.  Rising interest rates typically means less competition and generally selling prices closer to list prices with offers that contain more conditions and more back and forth negotiations.

Also of note, in the last two months there has been an unusually large number of listings that have been withdrawn particularly in the $1million-$1.5million price range.

 

*bedrooms/baths