February Market Update

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December 2013 Market Report

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October Monthly Market Update

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July Real Estate Update

Though median prices in many of our Bay Area markets experienced a slight midsummer cooling from June to July, homes are still in high demand, as low inventory levels and above-list sales prices attest.

However, in some markets, prices continued to climb. Median home prices in Marin County passed the $1 million mark in July and are up 21 percent since January. In Sonoma County, median home prices hit $480,000, an increase of 24 percent since the beginning of 2013.

Available properties are still exceptionally slim, especially in San Francisco, where the months’ supply of inventory (MSI) for condos hit its lowest level in the past 12 months. Single-family homes in the city are also hard to come by, with MSI reaching lows we haven’t seen since December. And buyers continued to shell out more than list price in several of our hottest markets, including the East Bay, Contra Costa, and San Francisco.


SAN FRANCISCO, CONDOMINIUMS

Unlike their single-family-home counterparts, median condominium prices in San Francisco continued to rise in July, hitting $879,000, the second largest in a year. Median San Francisco condominium prices rose 6 percent from June to July and 14 percent from July 2012.

With only 0.9 months’ supply of inventory on the market, condominiums in San Francisco are scarcer than they’ve been in a year. This was reflected in the prices buyers paid, which averaged 6.6 percent above list price. Only two months in the past year did average sales prices for San Francisco condominiums fall below asking prices.

The length of time that condominiums stayed on the market was 37 days, identical to June and just a day shorter than May.

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May SF Real Estate Market Update

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Monthly SF Real Estate Update

SAN FRANCISCO, CONDOMINIUMS

The supply of condominiums on the market in San Francisco rose solidly in January and February, reaching a 1.9-month supply, but the gain was short-lived. The supply fell to 1.2 months in March and continued sliding in April to 1 month.

Condos lasted an average of  just 40 days on the market before a sale was pending, the second-lowest level in a year’s time. In April 2012 the days on the market averaged 70 days.
The median sales price for condos was $912,500, a big jump up from $730,250 a year ago. Sales prices averaged nearly 5 percent above asking prices.

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 Condo Update

SAN FRANCISCO, SINGLE-FAMILY HOMES

The median sales price for single-family homes in San Francisco reached $1 million in April, the highest level in more than five years and a big jump from just three months ago when the median sales price was $748,000.

Sellers also enjoyed a sales premium of more than 8 percent above asking prices.
Homes sold after an average of 32 days on the market, down from 58 days in December and 54 days a year ago. The inventory of available homes remained near the lowest levels in several years at 1.3 months’ supply.

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 Single Family Home Update

Pacific Union’s Monthly Real Estate Update

San Francisco’s condominium market remained red-hot in February, with sales closing just 34 days after being listed — down from 62 days in December and 70 days in February 2012.

February home prices posted exceptionally strong gains across the Bay Area and the Tahoe/Truckee region, led by San Francisco, where the median sales price for a single-family home jumped $166,000 — 26 percent — in a year’s time.

Sales prices topped asking prices in many regions, with sellers in the East Bay receiving a nearly 11 percent price premium.
 
Local real estate markets remained exceptionally tight in February, with the supply of available homes down from a year ago in every region and homes selling faster in all but one region.

SAN FRANCISCO, CONDOS

The median sales price rose to $824,750, the highest in more than a year, and sellers received an average of 3.6 percent above the asking price.
 Available homes on the market slipped to an extremely tight 1.7-months’ supply, down from a 3.4 months’ supply one year ago.

SAN FRANCISCO, SINGLE-FAMILY HOMES

The median sales price for single-family homes in San Francisco shot up 26 percent to $801,000 in February, an increase of $166,000 from a year earlier.
And sellers had another reason to be thankful: Final prices were, on average, nearly 6 percent above asking prices.
Homes closed an average of 31 days after being listed, the fewest days on market in more than a year after four straight months of declines. The housing supply was measured at 1.8 months’ supply, the highest level since last September, but still evidence of a tight market.

Future House Values? Simple as Supply and Demand

For some time now, we have attempted to shed light on the fact that pricing in today’s real estate market, as it is in the markets for every other saleable item, will be determined by the concept of ‘supply and demand’.
 
According to dictionary.com:

“The relationship between supply and demand determines the price of a commodity. This relationship is thought to be the driving force in a free market.”

In real estate, supply and demand is represented as the current month’s supply of homes for sale (the number of homes for sale divided by the number of homes sold in the previous month).
While there is no steadfast rule that will apply to pricing in every category of housing, here is a great guideline:

• 1-4 months supply creates a sellers’ market where there are not enough homes to satisfy buyer demand. Appreciation is guaranteed.
• 5-6 months supply creates a balanced market. Historically home values appreciate at a rate a little greater than inflation.
• 7-8 months supply creates a buyers’ market where the number of homes for sale exceeds the demand. Depreciation follows.

What is happening across the country right now?

In most parts of the country, home values are rising. This is for two reasons:

1. According to NAR’s latest Existing Homes Sales Report, raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.
2. According to this month’s Pending Sales Report from NAR, houses going into contract reached levels last seen in April 2010 which was the month the Home Buyers’ Tax Credit expired.

This has resulted in a 4.2-month supply at the current sales pace which is the lowest housing supply since April 2005 when it was also 4.2 months.

Based on the table above, we can see that the supply/demand ratio is leaning toward a sellers’ market where prices will appreciate. That has created positive movement in housing values in most parts of the country.

When your real estate professional discusses home values, he/she should be prepared to show what the supply/demand ratio for homes similar to yours is in your area.

Joske's Monthly Real Estate Update

Home sales typically slow during the winter months, but Pacific Union’s real estate markets in the Bay Area and Tahoe/Truckee have stayed busy through January (and on into February), with buyers eager to make purchase offers even as the inventory of available homes remained exceptionally tight. All of our regions reported strong sales activity in January as measured by the percentage of homes in contract. Typically, more than 35 percent of homes in contract indicates a sellers’ market and less than 25 percent reflects a buyers’ market. A balanced market has 25 to 35 percent of homes in contract. Other measurements, such as median sales price and months’ supply of inventory, also reflect market activity. 

 SAN FRANCISCO

 Southeast San Francisco had the greatest supply of homes for sale in January, with 199 in District 9 (South of Market, Inner Mission and Bernal Heights neighborhoods) and 136 in District 10 (Bayview, Visitacion Valley) – nearly 40 percent of the city’s total (869). The fewest homes for sale were in District 3 (Ingleside, Stonestown, and Merced Heights), with 27 on the market. The percentage of San Francisco homes in contract reached 40 percent in January, the highest level in years. The tightest markets were for homes priced from $3 million to $4 million (eight of 15 homes in contract, or 53 percent) and from $750,000 to $1 million (79 of 162 homes in contract, or 49 percent). The greatest number of homes were priced from $500,000 to $750,000 (246), followed by $100,000 to $500,000 (182), and $750,000 to $1 million (162).

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November Real Estate Market Update

November Monthly Market Update

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