September San Francisco Real Estate Insider
We now have Labor Day in the rear view mirror and many of us have a new home as a fall priority. But, as if COVID, work-at-home, social distancing and closed schools were not enough of a daily challenge, we are now dealing with fires and unhealthy air quality...and its not even fire season yet. The local market expectation for fall is that inventory levels will increase and if recent fall market patterns are an indicator of what is to come, I see buyer opportunity.
Market activity in San Francisco in August was solid with a large number of listings going into contract, hitting a high point for the year (and matching the high points of recent years). Surprisingly, the fires did not significantly impact the number of deals made in most Bay Area counties during the last two weeks of the month: the exceptions being Santa Cruz, Sonoma, Monterey and Napa Counties, which saw declines of 13% to 33%.
The number of active listings in San Francisco has risen dramatically over the last few months, outpacing the increase in listings going into contract. However, there are significant differences between the single family house and condo markets since the pandemic hit. The condo market is much weaker (comparing demand to supply). However, within the condo market, different neighborhoods are seeing varying dynamics and hundreds of condos are still selling each month (yet supply still climbs as the trend is to exit large community living situations).
With the increase in inventory has come a big jump in the number of listings. This has also spiked the number of active listings that reduced their price. In some market segments and locations, sellers are now competing for buyers. Just look at large condo buildings with several available (similar) units; buyers are having a tough time quantifying a sellers calacatta marble kitchen island upgrade for $250k more in price than the same unit a floor below with a very nice quartz island.
Wondering what your buying power looks like in other Bay Area Counties? Below is a single family comparison of median sales prices, sizes and dollar per square foot values from this summer.
The following two charts illustrate aspects of the San Francisco single family market by sales volumes, median sales prices and inventory levels by Realtor district.
Conversely, the following charts illustrate aspects of the San Francisco condo & co-op market: sales volumes, median sales prices and inventory by Realtor district. keep in mind, over the past few years an MSI (months supply of inventory) of two to three months was fairly standard. Some neighborhoods are still inventory starved; others are well over supplied.
As I am sure you can imagine, how people buy and sell real estate has likely changed forever. Sellers expect to have their property exposed using an array of digital assets so it can be properly "experienced" prior to making an appointment to physically view it. Likewise, a buyer can no longer simply walk into an open house on Sunday at their convenience. If you or someone you know is interested in buying and would like access to available properties, please reach out. I am happy to help.