San Francisco - May 2016

The Real Estate Update

Zephyr Real Estate  
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Home sales activity, representing buyer demand, is one of the most basic market trend indicators. We typically compare the same time period because home sales are seasonal, lower in the winter and summer months and higher in the spring and fall. Over the first four months of 2016, the number of homes sold declined by 13% for single family homes and 10% for condominiums versus the same months in 2015. While this does represent lower demand, reviewing other indicators will provide a better understanding of overall market conditions.

The amount of supply available, how long it takes to sell and at what price, will provide a better indication of market dynamics buyers and sellers can expect. On the supply side, the inventory of available homes for sale remains low, but it has increased compared to last year. Single family home inventory was up slightly in April 2016 versus the prior year to 587 homes. Condominium inventory year-over-year was up by 94 units or 15%. In terms of the time required to sell homes placed on the market, the average in 2016 was 35 days, four days longer than in 2015. A selling time under 60 days is considered short and seller favorable, indicating an active market. Finally, the median home price, which represents market conditions motivating a buyer and seller to agree upon a sale price, surpassed or equaled its twelve month high in April 2016.

 
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Median Sales Price

$1,400,000

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Avg. Days on Market

32

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# Homes Sold

200

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% List Price Received

113.70%

 
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Median Sales Price

7.1%

5.9%

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Avg. Days on Market

23.1%

14.3%

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# Units Sold

-8.3%

-22.1%

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Bottom line?

Navigating the market has gotten a little tougher as frenzied market conditions have eased. There are more nuances to available home inventory, where fairly priced homes in the best locations are selling quickly and under competitive conditions, while those with less favorable locations and pricing are on the market longer and may eventually offer good buying opportunities. Lower sales volume, should it persist, amid rising inventory levels could lead to more balanced market conditions.

Check back next month for more insight into what’s happening in our dynamic and rapidly changing real estate market.

 
 

% List Price Received

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Months Supply of Inventory

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SFRs - For Sale vs Under Contract + Sold

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Condos - For Sale vs Under Contract + Sold

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Closer to Home

recent sales citywide

 
 
 

no sales reported for last 21 days

 
 

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Lauren O'Brien
415.613.0670
lauren@laurenmobrien.com
CalBRE # 01775998

ZephyrRE.com

 
 

Data Source: San Francisco Association of Realtors Multiple Listing Service (SFAR MLS)