San Francisco Q3 2018 Market Report

Stay on top of current market
conditions with up-to-date local data

 

Condominiums

Single Family Homes

Dear Friends,

The San Francisco real estate market is a dynamic and variable landscape.  Qualified, measured and experienced advice is more important than ever! If you or anyone you know would like to discuss the current market environment and what it means for your particular situation, and talk about the best strategy for your real estate investments, please don’t hesitate to contact me. I am happy to talk on the phone or meet for a cup of coffee or tea and find out how we can make this market work for you.

-Victoria 

From Pacific Union International Chief Economist Selma Hepp – Oct. 15, 2018

While most Bay Area regions saw sales slow in the third quarter, activity in San Francisco was on par with last year, with continued increases in higher-priced sales. Buyers were finally presented with more options, as single-family home inventory rose compared with the same period last year.   

Buyers of homes priced between $2 million and $3 million were more restrained than those in lower or higher price ranges. As a result, there were fewer bidding wars and more price reductions. By contrast, buyer demand for homes priced below $2 million remained steady, with eight in 10 homes selling for more than asking price for an average 16 percent premium.

Condominium sales maintained strong momentum in the third quarter, and buyers continued to compete, leading to an increase in the share of units selling for more than asking price. Supply also improved compared with last year, giving buyers more choices.  

Looking Forward: Demand for San Francisco real estate remains steady despite some rebalancing of market expectations elsewhere in the Bay Area. With a lack of desirably priced inventory, sales activity going forward will be constrained, although continued economic strength will help fuel buyer demand. 

Posted on October 18, 2018 .

San Francisco Q2 2018 Market Report

Stay on top of current market
conditions with up-to-date local data

 

Condominiums

Single Family Homes

Dear Friends,

The San Francisco real estate market is a dynamic and variable landscape.  Qualified, measured and experienced advice is more important than ever! If you or anyone you know would like to discuss the current market environment and what it means for your particular situation, and talk about the best strategy for your real estate investments, please don’t hesitate to contact me. I am happy to talk on the phone or meet for a cup of coffee or tea and find out how we can make this market work for you.

-Victoria 

From Pacific Union International Chief Economist Selma Hepp – July 2018

Housing market activity in San Francisco in the second quarter proved especially robust when compared with the rest of the Bay Area, showing a solid year-over-year increase in home sales. Except for sales of homes priced below $1 million -- which were constrained by inventory shortages -- home sales activity picked up at all price ranges.

Continued supply constraints led to notably higher absorption rates compared with the second quarter of last year and to a roughly 10 percent increase in both median single-family home and condominium prices. The competitive market  produced a three-year high in the share of homes that sold for more than asking price. For single-family homes that sold over list price, buyers generally paid almost 20 percent premiums.

Sales of condominiums also picked up when compared with the same period last year. And while existing condominiums saw median prices continue to rise, newly constructed condominiums experienced relatively slower price growth. The increase in median existing condominium prices was partially driven by more high-priced sales than at the same time last year

Looking Forward:  Although third-quarter sales are expected to reflect mild seasonal lulls, continued economic strength will keep fueling demand for San Francisco real estate. The prospect of further mortgage-rate increases may attract some homebuyers who have been sitting on the fence.

Posted on August 13, 2018 .

San Francisco Q1 2018 Market Report

Condominiums

Single Family Homes

San Francisco's housing market got off to a strong start in the first quarter of 2018, with the largest increase in home sales activity among Bay Area regions. Sales were particularly solid for properties priced between $2 million and $3 million, both for single-family homes and condominiums. Sales of condominiums exceeded last year’s first quarter across all price ranges.

A lack of inventory and strong buyer demand led home prices to soar once again. The median price for single-family homes increased by 25.5 percent from the first quarter of last year.

Competition among homebuyers remained strong and was in line with seasonal trends. Generally, buyers get more aggressive during the peak homebuying seasons, but in the first quarter, they were willing to pay higher premiums. With the average single-family home selling for 16 percent above the asking price, San Francisco buyers paid the second-highest premiums in the region and more than they did during the same period last year.

Looking Forward: San Francisco’s steady job and income growth should continue to fuel demand for real estate in the city. While mortgage-rate increases have not yet deterred buyers, future anticipation of hikes may attract some who have been sitting on the fence.

Posted on August 13, 2018 .

San Francisco Q4 2017 Market Report

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VIEW THE FULL SINGLE FAMILY HOME REPORT

From Pacific Union International Chief Economist Selma Hepp – Jan. 15, 2018

Fourth-quarter home sales in San Francisco picked up, bringing activity to a level 5 percent higher than last year’s fourth quarter and overall 2017 activity 2 percent above 2016. Renewed buyer enthusiasm was particularly notable in October and November across all price ranges (with the typical seasonal slowdown in December), but the same dismal for-sale inventory levels that characterized most of 2017 persisted -- especially for affordable homes. Buyer sentiment remained strong, and home shoppers faced stiffer competition than during the same period last year, pushing median property prices up solidly.

Condominium sales also outperformed last year’s fourth quarter and throughout 2017, especially for units priced between $2 million and $3 million. Strong buyer demand in the resale condominium market produced solid appreciation, and new condominium prices again likewise saw some upward momentum. As with single-family home inventory, there were fewer new and existing resale condominiums available in the fourth quarter of 2017 than in the last quarter of 2016.

Looking Forward: Strong housing fundamentals and the Bay Area's economic growth will continue to feed buyer demand. Early year’s homebuyer traffic reports suggest that the first quarter will carry over renewed momentum in San Francisco housing markets despite some trepidation over the impacts of the tax reform.

Posted on January 22, 2018 .

San Francisco Q3 2017 Market Report

 

VIEW THE FULL CONDOMINIUM REPORT

VIEW THE FULL SINGLE FAMILY HOME REPORT

From Pacific Union International Chief Economist Selma Hepp – Oct. 18, 2017

Stronger 2017 housing market activity in San Francisco continued into the third quarter. Still, buyers remained constrained by very limited inventory. The quarter ended with fewer overall sales than during the same period last year, and inventory for both single-family homes and condominiums fell by double-digit percentage points.

At the same time, strengthened activity and competition among buyers caused properties to sell faster than they did in the third quarter of 2016 across all price ranges except for $3 million-plus. Bidding wars were common, and seven in 10 homes sold above the asking price, with premiums for single-family homes reaching 16 percent. Buyers of homes priced between $1 million and $2 million are facing more intense competition, and most paid 20 percent more than the asking price.

As a result, the median sales price showed moderate growth. Nevertheless, prices of newly constructed condominiums continued to trend lower, while prices of existing units maintained their solid upward momentum.

Looking Forward: The Bay Area’s strong economic drivers should continue to fuel demand for San Francisco real estate. Despite newly constructed condominiums, inventory levels remain severely undersupplied, which will hold back future home sales activity.

Posted on January 5, 2018 .

San Francisco Q2 2017 Market Report

The San Francisco real estate market is a dynamic and variable landscape.  Qualified, measured and experienced advice is more important than ever! If you or anyone you know would like to discuss the current market environment and what it means for your particular situation, and talk about the best strategy for your real estate investments, please don’t hesitate to contact me. I am happy to talk on the phone or meet for a cup of coffee or tea, and find out how we can make this market work for you.

- Victoria

VIEW THE FULL CONDOMINIUM REPORT   VIEW THE FULL SINGLE FAMILY HOME REPORT 

From Pacific Union International Chief Economist Selma Hepp - July 14, 2017

Second-quarter housing market activity in San Francisco was characterized by heightened buyer activity amid declining inventory conditions. These combined forces led to higher absorption rates, bringing the supply of homes for sale to a two-year low. Strong buyer activity also led to diminished days on market across all price ranges.

Price appreciation for new condominiums remained constrained in San Francisco neighborhoods where much construction has occurred, such as South of Market. Existing condominiums showed slow price growth, although they fared relatively better in the second quarter than in prior months. 

Looking Forward: Although we expect third-quarter sales to reflect a mild seasonal lull, the Bay Area’s reliable and impressive core economic drivers should continue to fuel demand for San Francisco real estate. And despite mortgage interest rates that remain historically low, the possibility of increases may motivate some homebuyers who have been sitting on the fence.

Posted on September 6, 2017 .

San Francisco Q1 2017 Market Report

Q1 ANALYSIS

From Selma Hepp, Chief Economist Pacific Union International - 4/14/2017

San Francisco's housing market continued the balancing act between buyers and sellers in the first quarter. While demand remained strong, a severe lack of homes priced below $2 million kept a lid on sales growth in that price segment. On the other hand, sales of homes priced above $2 million saw a more favorable quarter when compared with the same period last year.

View the full report...

 

 

Posted on April 20, 2017 .

San Francisco Q4 2016 Market Report

Q4 ANALYSIS

From Selma Hepp, Chief Economist Pacific Union International - 1/13/2017

Fourth-quarter home sales activity in San Francisco sustained the same momentum as recorded in previous quarters, with relatively fewer sales than last year but a better balance between buyers and sellers. Generally, the largest slowdown in homes sales occurred among properties priced below $1 million and between $2 million and $3 million. The lower-priced category continues to suffer from depleted inventory, while the slowing activity of higher-priced homes resulted from the general uncertainty in the market that began earlier in the year. 

View the full report...

 

Posted on January 17, 2017 .

San Francisco Q3 2016 Market Report

Q3 ANALYSIS

From Selma Hepp, Chief Economist Pacific Union International - 10/15/2016

The third quarter in San Francisco continued along the same path seen in the previous couple of quarters, with normalizing market conditions striking a better balance between buyers and sellers. Sales activity in August and September was on par with the same period one year ago. July sales fell notably from last year, but this trend was consistent across the entire Bay Area and reflected a drop from the peak activity seen last July. 

View the full report...

 

Posted on October 21, 2016 .

San Francisco Q2 2016 Market Report

The San Francisco real estate market is a dynamic and variable landscape.  Qualified, measured and experienced advice is more important than ever! If you or anyone you know would like to discuss the current market environment and what it means for your particular situation, and talk about the best strategy for your real estate investments, please don’t hesitate to contact me. I am happy to talk on the phone or meet for a cup of coffee or tea, and find out how we can make this market work for you.

San Francisco Condo Report

San Francisco Single Family Home Report

Posted on August 29, 2016 .

San Francisco Q1 2016 Market Report

The first quarter of 2016 was defined by a general ‘plateau’ and a sense of relief for some buyers in the San Francisco market.  In the first quarter of 2016, we experienced less multiple offer situations and a decrease in activity in the $2+m range.  However, entry level homes and condos stayed relatively strong. An interesting note about the first quarter of 2016 - no tech companies went public.  We haven’t experienced this scenario in at least 7 years. While this may shift the real estate landscape throughout The City, the Bay Area at large continues to be a shining example of job growth and prosperity in the United States. We look forward to a strong second quarter!

In this report, you'll find more information on the current state of the market as well as some insight from Pacific Union's new Economic Expert, Selma Hepp. View full report...

Posted on April 28, 2016 .

San Francisco Q4 2015 Market Report

I am pleased to present the San Francisco Q4 Real Estate Report for your review. This report’s data reflects the expected end-of-year seasonal slowdown as well as a continued shift toward more ‘balance’ in the marketplace. The current demand for inventory supports assertions of a stable market, if not as seller-centric as the past few years. Another ‘element’ to keep in mind for the new year in San Francisco real estate– snow! It is not necessarily the rain, but the draw to the snow that distracts a significant portion of the buyer pool during this season. And another local phenomenon should be strongly considered: The Super Bowl. Many high end homes have been withheld from the market in favor of high seasonal rent during this special event. I would expect more inventory, particularly in the luxury sector, to open up after the last confetti has been cleared from the Market Street festivities. 

Sellers can still enjoy the appreciation garnered from the past few years’ run-up. Buyers should enjoy (still) historically low interest rates, but the new Consumer Financial Protection Bureau measures may lengthen the lending process, creating longer closings than we’ve become accustomed to in our fast and furious marketplace...View Full Report

Posted on January 25, 2016 .

San Francisco Q3 2015 Market Report

I am pleased to present the San Francisco Q3 Real Estate Report which highlights the wild spring and early summer market we experienced – a boon for sellers. While the fall market is still teeming with many qualified buyers, we are experiencing a collective breath, a pause if you will. It would appear that some neighborhoods have reached their logical pricing ‘limits’ and in many areas we may be experiencing the long-anticipated ‘plateau’. Inventory is higher than it’s been in recent memory, a relief for many buyers who are finally enjoying more options. Interest rates are still low, but the new Consumer Financial Protection Bureau measures may lengthen the lending process, creating longer closings than we’ve become accustomed to in our fast and furious marketplace....View the Full Report

Posted on November 5, 2015 .