The City View: June Update
Summer is officially here, and although it doesn't feel like it, our real estate market is beginning to slow down. But this isn't the traditional summer slowdown, where prices soften and demand fades. Instead, it's being driven by a severe shortage of inventory. The number of homes and condos on the market this week is down 55% compared to the same week last year. Part of this is seasonal, but much of it is because new listings are being snapped up almost as quickly as they come to market. Simply put, there just aren't enough homes to meet buyer demand. With so little inventory available, the market is taking an unofficial pause. This is not because buyers have gone away, but because there aren't enough homes for them to buy. For sellers who have been waiting on the sidelines, it's worth taking notice. For buyers frustrated by the market's pace, this "summer slowdown" might actually work in your favor, as it typically means less competition for the homes that do come to market. With IPOs looming on the horizon, this summer will most likely be the calm before the storm, and the Fall could be even crazier than what we saw this spring.
Single-Family Homes Breach the $2.2 Million
Mark for the First Time
San Francisco's single-family home market continues to reach new heights, with the median sale price climbing 22.56% year-over-year to $2,200,000. This marks one of the strongest year-over-year gains we've seen in the market's recent history. The condo market posted more modest gains, with the median sale price increasing 3.17% to $1,332,500. Competition remains extraordinarily fierce, with single-family homes selling for nearly 25% over the original asking price on average, and condos selling for nearly 7% over asking. These premiums reflect the intense demand from buyers who are willing to pay top dollar to secure a home in San Francisco.
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