Buy.Sell.Stay. May 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 June 2016
Executive Insights The Summer Swell is Slashing Inventory Last month saw a flood of inventory hit the market like we hadn’t seen in a while. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month. But that excess inventory didn’t last long and May saw the listing inventory drop drastically in almost every part of the Bay Area. As we predicted, the strong job market and pent up demand for inventory allowed those people that have been standing on the sidelines to get back in the home-buying game. And they didn’t waste any time as sold properties for the month of May were up significantly month-over-month in almost all parts of the Bay Area. This aggressive move on the increased April inventory is also chipping away at the days on market (DOM) for sellers. As buyers are trying to secure the purchase of available properties, we are seeing the DOM on a downward trend across the region. This trend should continue as the inventory continues to stay low into the later summer months. Another win for sellers is the fact that buyers have access to amazing mortgage rates right now. Here’s an excerpt from Realtor.com from June 13, 2016: “The national average rate for a 30-year fixed mortgage is 3.63%, an increase from April but far below May 2015’s 4.12%. Realtor.com staffer Jonathan Smoke explains that with the Fed likely not raising rates this summer but likely raising them again by this time next year, the time is now to lock in.” This mortgage rate news is going to allow buyers to be more aggressive with their offers and more than likely keep inventory low. In turn we will continue to see multiple offers and over asking prices in the most desirable regions of the Bay Area. So in the blink of an eye, all those houses that hit the market in April have new buyers calling them home. It looks like this roller coaster of a real estate market will continue to keep us on our toes into the next several months. So continue to keep an eye on your individual region and let us help you become a more informed home buyer or seller.
Market Highlights San Francisco
Total Homes for Sale
252
Luxury Homes for Sale*
39
*Homes for sale above $3 million.
Total Homes Sold
Average Days on Market
Average List Price
Average Sold Price
167 $2,338,000
30
$1,568,000
Inventory San Francisco
Total Number Of Homes:
For Sale
Sold
252
245 136
167
192 148
184
197 155
157 173
184 186
190
231
212 221
184 192
179 186
150
160 173
200
188 198
250
270
262
300
98
65
97
100
50
0 15-Mar
15-Apr 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
It is a Seller’s Market Property Sales (Sold) May property sales were 167, down 10.2% from 186 in May of 2015 and 12.1% lower than the 190 sales last month. Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 73 units of 40.8%. 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 2.9% compared to the previous month. Property Under Contract (Pended) There was an increase of 33% in the pended properties in May, with 246 properties versus 185 last month. This month’s pended property sales were 16% higher than at this time last year.
Inventory By The Numbers Home Price Range
Homes For Sale
Year Over Year % Difference
< $500K
2
-33.3%
$500K $1M
103
28.8%
$1M - $3M
108
58.8%
$3M - $5M
18
50%
$5M - $10M
12
20%
$10M +
9
50%
Pricing San Francisco
Average Prices in $,000:
For Sale Price
Sold Price
3000 $2,470
2500 $2,102
$2,177
$2,150
$2,082 $2,036
$1,919
2000 $1,613
1500
$1,653
$1,726
$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
$1,678
$2,338
$1,568
500 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
The Average For Sale Price is Neutral The Average For Sale Price in May was $2,338,000, up 12.3% from $2,082,000 in May of 2015 and up 4.9% from $2,228,000 last month. The Average Sold Price is Neutral The Average Sold Price in May was $1,568,000, down 12.5% from $1,792,000 in May of 2015 and down 6.6% from $1,678,000 last month. The Median Sold Price is Neutral The Median Sold Price in May was $1,335,000, down 2.5% from $1,369,000 in May of 2015 and down 1% from $1,348,000 last month.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
Pricing By The Numbers
Average Price Per Square Foot.
$886
4.9%
Month over Month
On The Market San Francisco
Average Days On Market
3000 $2,470
2500 $2,102
$2,177
$2,150
$2,082 $2,036
$1,919
2000 $1,613
1500
$1,653
$1,726
$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
$1,678
$2,338
$1,568
500 0 15-Mar
15-Apr
15-May
15-Jun
15-Jul
15-Aug
15-Sep
15-Oct
15-Nov
The Days on Market Shows Downward 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 Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for May 2016 was 30, down 16.7% from 36 days last month and down 3.2% from 31 days in May of last year. The Sold/List Price Ratio is Rising 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 114% is up 2.7% from last month and up from 1.8% in May of last year.
15-Dec
16-Jan
16-Feb
16-Mar
16-Apr
16-May
DOM By The Numbers Home Price Range
Days on Market
Year Over Year % Difference
< $500K
68
68%
$500K $1M
31
-52%
$1M - $3M
29
21%
$3M - $5M
43
35%
$5M - $10M
69
46%
$10M +
10
-630%