Buy.Sell.Stay. February 2016 Market Report San Francisco
2016 Intero Real Estate Services Inc., a Berkshire Hathaway affiliate and a wholly owned subsidiary of HomeServices of America, Inc. All rights reserved. Data provided by Trendgraphix February 2016.. All information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker.
Executive Insights Home Sales Trend Upward The health of financial markets and a lack of inventory continue to be the biggest drivers of the Bay Area housing market. And with the stock market starting off the year strong, we’re also feeling a strong housing market here, with the expected seasonal slowing that often comes with the beginning of the year. “The tempo of the Bay Area housing market is tied very closely to the financial markets,” said Tom Tognoli, President and CEO of Intero Real Estate. “So much of the Bay Area’s wealth is tied up in stock options and stock purchase plans. As the financial markets go, people’s attitudes and pocket books tend to follow.” Many have been talking about the high-end of the housing market cooling off, which we’ve seen a bit. But that doesn’t mean no one’s in the market for high-end luxury homes. “Just last week, we sold a home in Atherton for over $8.5 million that was on the market for less than a week.” So it’s not a totally chilled market by any means. It’s still very much a seller’s market in the Bay Area. And while a lack of inventory continues to be a major challenge for buyers that usually means a quicker sale at a great price for sellers, those who are selling to move up are also finding it frustrating. The good news is the number of active listings increased at the state level for the first time in five months in January, and the Bay Area was part of the trend with an 8% increase in homes for sale compared to the previous month. “The fundamentals underlying the demand for housing fueled a healthy start to 2016,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. But she, along with other economists, continues to watch overall economic trends such as volatility in the equity market, that can potentially lead buyers and sellers to hold back and take a “wait-and-see” approach. So the market is starting strong, but with lack of homes and the uncertainty of an election year, we could see some slower growth. We like to watch the housing market numbers month to month because we always see noticeable changes that help our agents assess pricing and bidding strategies. Let’s take a look at the important numbers broken down into categories that are easy to understand. This will help you get clear on what’s happening in your market that can impact your home sale or purchase.
Market Highlights San Francisco
Total Homes for Sale
184
Luxury Homes for Sale*
24
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
95
$2,062,000
41
$1,623,000
Inventory San Francisco
Total Number Of Homes:
For Sale
Sold
184 136
155
157 173
184 186
197
212 221
188 198
179 186
184 192
160 173
168
95
16-Jan
16-Feb
65
79
50
96
98
100
114
125
150
178
200
231
250
270
262
300
0 14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
It is a Seller’s Market Property Sales (Sold) February property sales were 95, down 16.7% from 114 in February of 2015 and 1% lower than the 96 sales last month.
Inventory By The Numbers
Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 16 units of 9.5%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 35.3% compared to the previous month. Property Under Contract (Pended) There was an increase of 56.3% in the pended properties in February, with 136 properties versus 87 last month. This month’s pended property sales were 0.7% lower than at this time last year.
Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
2
-60%
$500K $1M
67
-23%
$1M - $3M
92
64%
$3M - $5M
11
38%
$5M - $10M
9
-10%
$10M +
4
0%
Pricing San Francisco
Average Prices in $,000:
For Sale Price
Sold Price
3000 $2,470
2500 $2,055 $2,023
2000
$2,102
$2,177
$1,653
$1,726
$1,792
$1,613 $1,724
$1,507 $1,277
$2,220 $2,062
$1,919
$1,846
1500
1000
$2,150
$2,082 $2,036
$1,902
$1,496
$1,630
$1,544
$1,466
$1,675
$1,623 $1,470 $1,482
$1,318
$1,226
500 14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
0
The Average For Sale Price is Neutral The Average For Sale Price in February was $2,062,000, up 1.9% from $2,023,000 in February of 2015 and up 8.4% from $1,902,000 last month.
Pricing By The Numbers
The Average Sold Price is Neutral The Average Sold Price in February was $1,623,000, up 7.7% from $1,507,000 in February of 2015 and up 9.5% from $1,482,000 last month.
The Median Sold Price is Neutral The Median Sold Price in February was $1,410,000, up 28.2% from $1,100,000 in February of 2015 and up 22.6% from $1,150,000 last month.
Average Price Per Square Foot.
$838
2.2%
Month over Month
On The Market San Francisco
Average Days On Market
45 40
42 39
42 38
37
33
35 31
36
31
36 33
31
30
28
30
41
25 20 15 14-Dec
15-Jan
15-Feb
15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
10
The Days on Market Shows Neutral Trend 5 The average Days on Market (DOM) shows how many days the average property 0 is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for February 2016 was 41, down 2.4% from 42 days last month and up 10.8% from 37 days in February of last year.
The Sold/List Price Ratio Remains Steady The Sold Price vs. List Price reveals the average amount that sellers are agreeing to come down from their list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. List Price of 109% is up 1.9% % from last month and down from 1.8% % in February of last year.
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
78
-26%
$500K $1M
39
-3%
$1M - $3M
39
15%
$3M - $5M
31
158%
$5M - $10M
144
182%
$10M +
0
-100%