Buy.Sell.Stay. July 2016 Market Report San Francisco
Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix August 2016
Executive Insights The Summer Heat is Cooling Down As we started ramping up the summer-selling season back in April of this year, we were predicting a hot market. Little did we know that it was going to be RED HOT! In fact, Intero saw the best month ever in units sold and dollar volume in its 14-year history during the month of June. When you hit all-time highs, things are bound to cool off, and that’s exactly what the Bay Area real estate market experienced last month. In July we saw a downward trend in inventory that impacted sold listings. Because the level of new for-sale listings was trending downward and buyers were being more cautious based on timing, sold listings were down in every region of the Bay Area. There were 14.16% less Bay Area homes sold in July (2369) then there was in June (2760). These numbers support a trend that the Bay Area is pulling back from an incredibly hot seller’s market to a more normal seller’s market. In what looks like a contradiction to this cooling trend is the fact that a majority of the Bay Area regions saw for-sale listings up from June to July. But unlike the last three months, the amount of for-sale listing increases were closer to flat than the huge double-digit percentages we were seeing previously. This is having an impact on the volume of sold listings we’re seeing. Also contributing to this cooling trend was seasonality. With the start of school just around the corner, most buyer and sellers are less motivated to move at this busy time of the year. This has more sellers staying put and not offering their property to the market because they don’t want to disrupt the start of their kid’s school year. Even though we’re seeing a more moderate market as we roll into August, it still remains very healthy. With unemployment figures near 8-year lows and a lack of inventory in the most desirable Bay Area locations, we will still see high demand with more buyers than listings. But in other areas, buyers will have more choice and be able to take a more deliberate approach in their buying decision. This will keep listings in those areas on the market a little longer than we’ve experienced in the last several years and force sellers to price more appropriately. We’ll continue to keep you informed with our take and hopefully provide you with information that can help in your buying or selling process.
By Tom Tognoli President & CEO Intero Real Estate Services
Market Highlights San Francisco
Total Homes for Sale
241
Luxury Homes for Sale*
29
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
184 $2,186,000
34
$1,668,000
Inventory San Francisco
Total Number Of Homes:
For Sale
Sold
184
241
246 223
175
193
192
136
148
184
197 157 173
155
150
252
245
231
212 221 184 186
179 186
200
188 198
250
270
262
300
98
16-Jan
16-Feb
65
97
100
50
0 15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Mar
16-Apr
16-May
16-Jun
16-Jul
It is a Seller’s Market Property Sales (Sold) July property sales were 184, down 16.7% from 221 in July of 2015 and 17.5% lower than the 223 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 29 units of 13.7%. 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 down 2% compared to the previous month. Property Under Contract (Pended) There was a decrease of 24.2% in the pended properties in July, with 169 properties versus 223 last month. This month’s pended property sales were 15.5% lower than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
1
-80%
$500K $1M
90
-8.2%
$1M - $3M
121
37.5%
$3M - $5M
15
36.4%
$5M - $10M
8
14.3%
$10M +
6
100%
Pricing San Francisco
Average Prices in $,000:
For Sale Price
Sold Price
3000 $2,470
2500
$2,150
$2,082 $2,036
$1,919
2000 $1,613
1500
$1,792
$1,724
$1,630
$2,339
$2,220 $1,902
$2,062
$1,496 $1,466
1000
$1,544
$1,675 $1,470 $1,480
$1,318
$1,597
$1,767
$2,228
$1,668
$2,338 $2,283
$1,554
$2,186
$1,692 $1,668
500 0 15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
16-Jun
16-Jul
The Average For Sale Price is Neutral The Average For Sale Price in July was $2,186,000, up 35.5% from $1,613,000 in July of 2015 and down 4.2% from $2,283,000 last month. The Average Sold Price is Neutral The Average Sold Price in July was $1,668,000, up 2.3% from $1,630,000 in July of 2015 and down 1.4% from $1,692,000 last month. The Median Sold Price is Neutral The Median Sold Price in July was $1,363,000, up 6.9% from $1,275,000 in July of 2015 and up 6.9% from $1,275,000 last month.
Pricing By The Numbers
Average Price Per Square Foot.
$899
2.4%
Month over Month
On The Market San Francisco
Average Days On Market
42
45 38
40 35
33
31
36 31
33
41
36
38
36
35
30
34 30
30 25 20 15 10 5 0 15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
15-Dec
16-Jan
The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyerâ&#x20AC;&#x2122;s market, a downward trend indicates a move towards more of a Sellerâ&#x20AC;&#x2122;s market. The DOM for July 2016 was 34, down 10.5% from 38 days last month and up 3% from 33 days in July of last year.
16-Feb
16-Mar
16-Apr
16-May
16-Jun
16-Jul
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
0
N/A
$500K $1M
30
-3%
$1M - $3M
35
14%
$3M - $5M
40
-18%
$5M - $10M
51
4%
$10M +
68
-507%