SAN FRANCISCO MARKET UPDATE | Q3 2021 SNAPSHOT
With Fall now upon us and housing inventory scarce, demand has pushed the median price per square foot to new heights across San Francisco. Single-family homes continue to be the most desirable segment of the market, with the median sale price up 12.3 percent from Q3 2020, and the median price per square foot up 13.2 percent. Homes sell extremely quickly, with the median time on the market just 12 days; though it is not uncommon for more popular homes to sell within a day or two of being listed, usually contingency-free and well over asking. The neighborhoods that saw the largest increases in the percent of list price received include the Sunset, Westwood Park, Sunnyside, and Excelsior. The areas with the highest median price per square foot include the Marina, Corona Heights, and Pacific/Presidio Heights. While the median sale price for Condominiums ticked down 1.9 percent compared with last year, the median price per square foot increased 2.6 percent, there were 20.0 percent more sales, and they are selling much faster, with the median market time recording at 20 days. Over half of all condominiums that sold did so over asking, with the average price received 4.8 percent over asking. The neighborhoods that saw the largest increases in percent of list price received for condominiums include Corona Heights, Sunset, and the Richmond. National mortgage rates decreased slightly this week, with FreddieMac reporting, ‘Mortgage rates continue to hover at around three percent again this week due to rising economic and financial market uncertainties. Unfortunately, with the expectation that both mortgage rates and home prices will continue to rise, competition remains high and housing affordability is declining.’
Inventory has been low for a long time and it remains low, and with interest rates at historic lows, home prices have increased at quite a clip. Mike and I have buy-side clients that purchased homes just a few months ago and are already thanking their lucky star they bought when they did. Typically the market slows down right after Halloween as we move into the Holiday Season. There will be even fewer homes for sale but there will also be fewer buyers willing to spend the Holidays looking at homes a writing offers. Usually, deals can be made this time of year, but the available inventory can be of somewhat lower quality. Listing agents will use this time to help their sell-side clients upgrade and polish their homes in anticipation of the Spring season. The future is uncertain, and I always suggest now is the best time to strategize if you are considering the sale of your property.
Want to know what is actually happening on the ground right now? Give us a call or reach out and we will be happy to share what we are seeing. Mike and I are writing offers and listing properties, we see what is really going on in the RE market.
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