The City View: May Update
Entering May, there was a lot of economic uncertainty due to the implementation of tariffs.
Unfortunately, if you’re looking to score a listing for below the asking price, you’re going to have to look very hard, as single-family homes are selling for 14.2% more than their original asking price on average. Fortunately, the condo market isn’t nearly as competitive, as the average listing sells for just 0.4% more than the original listing price.
When determining whether a market is a buyers’ market or a sellers’ market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a sellers’ market, whereas markets with more than three months of MSI are considered buyers’ markets.
With inventories being such a huge issue, you might think that both the single-family home and condo markets are both seller's markets. However, that’s not the case in San Francisco. The single-family home market remains a seller's market, with just 1.7 months' worth of supply on the market at this point in time. However, the condo market is a buyer’s market, as there is roughly 3.9 months' worth of supply ready to buy on the market right now!
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