The Local Lowdown

Quick Take:

Last month brought a notable jump in median sale prices for single-family homes. Inventory remains one of the biggest challenges in the San Francisco market, and homes are being sold at faster and faster rates.

Median sale prices for single-family homes jumped by more than 7 percent in September

San Francisco saw a strong surge upward in median sale prices for single-family homes last month. Homes sold for 7.76 percent more than they did at the same time last year, marking the largest increase this year.
Condo prices declined by 3.29 percent. However, the average condo is now selling for a slight premium above the original list price, a trend not seen since May.

Inventories continue to lag last years numbers by more than 30 percent

Inventory challenges continue to shape the market. Active listings remain significantly lower than last year, with single-family inventory down 33.65 percent year-over-year and condo inventory down 32.22 percent.
This is due to fewer new listings — 7.61 percent fewer condos and 11.26 percent fewer single-family homes — combined with increased sales: 51.82 percent more condos and 19.33 percent more single-family homes sold.

As inventories shrink, homes are sold off incredibly quickly

With inventory tightening, competition rises. Single-family homes now spend an average of 13 days on the market, a 7.14 percent decrease year-over-year.
Condos are moving even faster, spending 25 days on the market, 28.57 percent faster year-over-year and 50.98 percent faster month-over-month.

The condo market creeps closer to becoming a sellers market

Months of Supply Inventory (MSI) helps determine whether a market favors buyers or sellers.
Single-family homes remain in sellers market territory with 1.5 months of inventory.
Condos are moving closer to a sellers market, with 3.2 months of active inventory in September.

Bottom Line

San Francisco shows strong upward pressure on single-family prices, accelerated sales, and shrinking inventory keeping competition high. Condos are moving toward a sellers market, and buyers act quickly when quality listings appear. Sellers have favorable conditions, while buyers need preparation and decisiveness.