There was big news for the San Francisco real estate market this April. Multiple sources reported that housing prices in the Bay Area experienced an overall decline for the first time in four years. Keller Williams San Francisco noted that while median prices of San Francisco Single Family Homes rose 11.41% in 2015 to end the year at $1,235,000, it was the smallest annual percentage increase since 2011.
Median prices are still below their peak of $1,350,000 from last year, in May 2015. However, Q1 2016 may resume the pace of Q1:2012-Q2:2015, with a jump of 5.6%, which is the largest Q1 median price percentage increase in ten years.
The same cannot be predicted for Resale Condo-Loft median prices, which experienced their first Q1 drop since 2011. This was the second time during past three quarters that they dropped – Q3:2015 was down 6.9%. Resale Condo-Lofts have dropped to a median sales price of $1,100,000, which is down 4.35% from June 2015.
Both the Single Family Homes and Resale Condo-Loft Days on Market are following the usual seasonal patterns of increasing during the holiday season and decreasing with the beginning of the Spring buying season.
Both may be slightly higher in 2016 than in 2015, at 16 and 20 days respectively, but they are also both near historical lows.
As you can see in the charts, Months Supply of Inventory is up slightly over 2015’s levels at 1.9 months for Single Family Homes and 2.2 months for Resale Condo-Lofts, which continues the strong sellers market.
Here as well, the Single Family Homes and Resale Condo-Lofts New Listings are following the usual seasonal patterns of decreasing during the holiday season and increasing with the beginning of the Spring buying season.
Despite these trends, there is a cumulative 85 fewer new listings for Single Family Homes on the market in January, February and March in 2016 than there were in 2015.
Conversely, Resale Condo-Lofts had a reverse trend, with 32 more new listings on the market in January, February and March 2016 than in the same months 2015. This helps explain the longer Days on Market and downward median sales price trend.
All of this signals that San Francisco’s competitive real estate market might be slowing down. It is still a little too soon to tell for sure, but we will see if the next few months continue a decline in housing sales or if the real estate market jumps back up.
A decline in sales prices is good news for home buyers, but for sellers, the news means that working with top real estate agents is of the utmost importance in securing a high return on investment.
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Want to view the full report? CLICK HERE to see the April Market Update from Keller Williams San Francisco.