The City View: December Update
It has been a great year for San Francisco, a resurgence of sorts. With a new mayor, AI boom, and strong gains in the stock market, our city and our real estate market are thriving and we seem set for another strong year. This is not the case nationally, so we are very thankful for the position we are in. Our challenge, as always, is lack of inventory. Hopefully lower interest rates and higher sales prices will encourage more sellers to bring their homes to the market.
We want to thank all our clients who have made this a banner year for City Real Estate. For the first time, we will reach a billion dollars in sales. We are also happy to announce the opening of our flagship office in Marin, located in Kentfield. Our grand opening will be in February and we are excited to help continue to provide our same great service to clients in Marin and the North Bay. From everyone at City Real Estate, we want to wish you a very happy holiday season and a healthy and happy new year!
The Median Single-Family Home Sold for 15.82%
More than it did Last Year
In the month of November, we saw median sale prices soar on a year-over-year basis. Typically, we see a drastic decline in median sale price from October to November, but we didn’t see that this year. The decrease in median sale price was very modest, which resulted in the median sale price of single-family homes increasing by 15.82%, and the median sale price of condos increasing by 9.36% year-over-year. Additionally, single-family homes are selling for the highest premium that we’ve seen in the past three years, with the average home selling for 16% over the original asking price!
The Entire San Francisco Market is a Seller's Market
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 just 0.8 months of single-family home inventory and 2.1 months of condo inventory on the market, the entire San Francisco market has become a deeply entrenched seller's market. It does not appear that this will change any time soon!
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