San Francisco Market Focus Report – May 2013
The May issue of Market Focus Report, issued by the San Francisco Association of Realtors characterized the market by escalating prices, high demand, tight inventory and stiff competition from investors who can pay all cash and homebuyers may too take a moment’s pause. April, the kickoff month of peak spring home buying, found the median price for a single-family homes in San Francisco reaching the $1 million mark, an increase of nearly 32 percent over the April 2012 median price.
The following is an excerpt from the report, and focuses on Single Family Homes. Those of you in the know, know that you can buy a home in San Francisco throughout a broad range of neighborhoods. And depending on the neighborhood, prices currently start from $325,000 in the Southwest part of the City to an average high in the $2-$3 Million range, with the priciest listing at $24,800,000 in Cow Hollow near the Marina district. There are currently 68 active listings over $1.5 Million. The Citywide SFH Median Sales Price currently sits at $1,000,000. The Active for Sale inventory is 541 and an average of 27 days on Market. Here’s an excerpt from the April report:
Compared to April of last year, the inventory of single-family homes for sale in the City fell by 19.6 percent, to a total of 541 properties currently for sale. The number of homes under contract rose by 11.5 percent, while the number of homes sold dropped by 4.1 percent, to a total of 212 properties. The decrease in sales is a direct result of lack of inventory.
For homes that were priced below $700,000, the months supply of inventory dropped by 42.6 percent to 1.1 months. For higher-priced homes between $700,000 a,d $1.2 million, the months supply of inventory also fell, by 20.6 percent to 1.1 months.
Properties being sold within just a few weeks of listing indicates a strong sellers market. Sellers are, in most cases, getting multiple offers due to limited inventory.
One region of the City experiencing a boost of mojo is the Central East section known as District 9 which includes the neighborhoods of Potrero Hill, Dog Patch, Inner Mission and Mission bay. Since 2011, the inventory of homes in this district has shrunk by more than 42 percent with just 48 properties for sale in April 2013. At the same time, median prices in the area hit a 2-year high in April 2013.
John M Scott, Broker / Owner, Scott Keys Properties, Certified Distressed Property Expert (CDPE), Council of Real Estate Brokerage Managers (CRB), serving San Francisco and the surrounding San Francisco Bay Area