It’s been interesting year, to say the least, and real estate is one of many industries experiencing some wild swings. As we wrap up summer in San Francisco, we’re seeing the softest recovery from the spring shelter-in-place mandate out of all the markets in the Bay Area. Supply and demand conditions in condos are noticeably weaker than the housing market. Here’s what else the data shows.
Median Sales Price
On a three-month rolling basis, median house sales prices in San Francisco are peaking. It’s a big recovery after the huge drop we had in March and April. In June, median house prices hit a new monthly high of $1.8 million, which reflects the fact that high-end houses are experiencing particularly strong demand. It makes sense, since affluent buyers are less affected by the pandemic or the risk of unemployment, and quicker to jump back into the market.
Median condo sales, meanwhile, can’t be called low, but they are under their peak from last year. Within the condo market, some segments and locations are outperforming others. San Francisco’s biggest condo market is actually experiencing the weakest conditions. Again, it makes sense — prospective condo owners tend to be younger and less affluent, and they may have been more impacted by the pandemic.
Overbidding is par for the course in San Francisco, but the number of buyers bidding over asking price is much lower than it’s been over the last six years. Blame it on the fallout from shelter-in-place mandates, plus the fact that people are less likely to compete when there’s more supply.
Having access to numbers and statistics is one thing, but interpreting them can be quite another. If you’re looking for more information about what these numbers mean to you as a prospective buyer or seller in San Francisco, let’s talk.