How did the San Francisco real estate market do in October? Well, let’s just say that our weather wasn’t the only warm thing this past month. As you can see below with the narrative and statistics provided by the San Francisco Association of Realtors (SFAR), the market continues to be very strong, with low inventory and low interest rates continuing to drive demand.
Now that the baton is in grasp of the final quarter of our annual relay, it’s a good time to look back and reflect. This year has been spectacular for residential real estate. Robust gains in sales and prices were felt throughout San Francisco’s 10 Residential Districts, with median single family home prices cresting the $1 million mark in both April and May. Homes have also been selling at a fast clip, with an average of 37 days on the market.
While consumers have felt empowered by lower interest rates, sellers are starting to regain their footing. Seller confidence is crucial to refill inventory bins, which are still relatively sparse.
New Listings were down 7.7 percent for single family homes but increased 0.3 percent for Condo/TIC/Coop properties. Pending Sales decreased 13.6 percent for single family homes but increased 20.9 percent for Condo/TIC/Coop properties. The Median Sales Price was up 11.1 percent to $921,945 for single family homes and 13.8 percent to $865,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 20.0 percent for single family units and 25.0 percent for Condo/TIC/Coop units.
The economy continues to snail forward. The government shutdown had a modest impact on borrowing – mostly centered on USDA and VA borrowers. Consumer confidence is central to ongoing recovery, and confidence was hindered by the shutdown. Consumer spending accounts for roughly 70 percent of U.S. economic activity and impacts the likelihood for big-ticket purchases like homes and cars. Future shutdowns are unwelcome.
We’d love to hear your thoughts and experiences with the market below