Q3 2019 WRAP-UP
The San Francisco market for single family homes saw growth in the median sale price to the tune of 1.8% compared with Q3 of last year. At the same time, the price per square foot increased by 4.3% to $991. The median market time remains unchanged at an extremely competitive 14 days. Eight out of ten homes sold over their list price, with purchasers paying an average of 14.8% over asking. While there has been an influx of new listings in the past several weeks, inventory levels are actually 15% less than the same time last year.
As reported by CNBC per the National Association of Realtors, the pending home sales index rose 1.6% in August, compared with July, and was 2.5% higher year over year. This index measures signed contracts to buy existing homes. August’s gain reverses a slump in July and is likely fueled by falling mortgage rates. NAR’s chief economist was quoted as saying, ‘The notable sales slump in the West region over recent years appears to be over. Rising demand will reaccelerate home price appreciation in the absence of more supply.’
Recent notable happenings in San Francisco include the opening of Chase Center, the central SoMa plan moving forward with residential developments, and an increase in tourism (according to the San Francisco Travel Association). The current average for a 30 year fixed rate mortgage is 3.65% (per FreddieMac.com) which is 1.06% lower than the same time last year, giving potential buyers more purchasing power.
Condominiums and TIC's
The median Condominium/TIC/Stock Cooperative sale price jumped 7.1% year-over-year to $1,285,000 with the median price per square foot increasing 3.5% to $1,170. Common interest properties are also selling quicker than Q3 of last year; the median days on market shed 3 days down to 17. Nearly two-thirds of properties sold over asking, with purchasers paying an average of 6.6% over asking. Inventory levels are 3% less than the same time last year, with 713 properties currently listed for sale.
MEDIAN AREA VALUES
For past San Francisco market updates, please visit Vanguard Properties' archive.