June SF Market Tracker Newsletter
There’s a drought…in inventory!
San Francisco is no stranger to a seller’s market, where buyer competition is fierce and housing inventory is low, but May brought on a dramatic shift in numbers bringing inventory back to the pre-pandemic days. The Months Supply of Inventory for Single Family Homes dropped to 1.6, the lowest it’s been in over 5 years, while condos dropped to 3.3, a 47.6% decrease compared to May 2020. With the continued upward pricing trend, it is safe to say that the San Francisco market has nearly recovered from the pandemic.
We’ve recovered, you say?
While it’s true that if we look at the City as a whole the numbers are strong and consumers seem eager to spend, but there are some stats that suggest we are still in the midst of a pandemic stricken market. The Median Sales Price (MSP) for a 1 bedroom condo in San Francisco has risen every month this year, bringing May’s MSP to $1.252M. However, if we look closely at some of the neighborhoods most affected by the SIP mandate, it’s clear that until there’s a return to the office and restaurants are fully open, these neighborhoods will continue to struggle. But, it’s good news for buyers as there are a few areas still left to sneak into the SF real estate market with the ever-elusive “Pandemic Deal”. Like Downtown, for example, where the MSP for a 1 bedroom comes at a bargain at $560K…close to 2014 prices. Similarly, SOMA, once one of the best “walk to work” neighborhoods, has an MSP of $760k for a 1 bedroom with prices reflecting those of 2016. Even the Inner Mission, home to foodies and hipsters alike, is still taking a hit with an MSP of $867K, akin to 2018 pricing. So, if you’re worried you missed all the “Pandemic Deals” it may not be too late! Just call me and I can help you locate your new SF home!
Monthly Market Tracker
Single Family Home inventory is going down and the Days on Market (DOM) is going down as well. More buyers than homes to sell has a predictable effect on how long it takes to sell a home. Days on Market for Single Family Homes is sharply down.
When Days on Market goes down we expect Median Prices to go up. This is clearly represented in the following graph as the median sales price for single-family homes has shot up.
We are starting to see the same trend for San Francisco condos. The pandemic had a harsh effect on condos, particularly in South of Market, South Beach, Mission Bay, Dogpatch, and the Mission. I think the bottom of the condo market was months ago and we are even seeing rents starting to go up as demand returns.
For San Francisco condos the spike is not as intense as it is for Single-Family Homes but the trend is clear as seen here.
If you are considering a sale or a purchase it is always the right time to discuss and prepare. Get ahold of us and we will be happy to walk you through what we are seeing in our local market. We are always happy to help!
