The City View: March Update

Q1 Market Recap: Low Inventory, Strong Demand, Rising Prices

It's hard to believe we've already finished the first quarter of the year. Lack of inventory has been the theme so far, yet total sales volume is up 6.7% compared to Q1 of last year. Demand is noticeably stronger despite political and stock market uncertainty. Buyers are more confident in San Francisco and the overall market, making more offers — and at higher prices.

Single-family homes are selling close to the peak pricing of early 2022, while condos, although not at peak, are showing signs of improvement year over year. Another factor motivating buyers is "lower" interest rates compared to this time last year. When the stock market declines, we typically see more favorable interest rates — and that's exactly what we saw this quarter. Buyers can now find ARMs in the high 5% range, about a point lower than last year. We expect a strong market throughout the rest of 2024, and if inventory remains low, prices will likely continue to rise.

Current Listings

1776 Green Street #201

3 BED · 3.5 BATH · 2 CAR PARKING
www.1776Green.com
OFFERED AT $5,995,000

909 Central Avenue

4 BED · 3.5 BATH
www.CityRealEstateSF.com
OFFERED AT $1,900,000

328 N. Ferndale · Mill Valley

4 BED · 3 BATH · 2 CAR PARKING
www.328NFerndale.com
OFFERED AT $1,825,000

1822 Lyon Street

2 BED · 2.5 BATH
www.1822Lyon.com
OFFERED AT $1,650,000

25A Alpine Terrace

1 BED · 1 BATH
www.25AlpineTerrace.com
OFFERED AT $899,000

Coming Soon

3 Helen Street A

3 BED · 3 FULL · 2 HALF BATHS · 2 CAR PARKING
www.NobHillTownhouse.com
OFFERED AT $1,995,000

50 Lansing Street #805

2 BED · 2.5 BATH · 2 CAR PARKING
www.50LansingPenthouse.com
OFFERED AT $1,749,000

461 2nd Street #C302

1 BED · 1 BATH · 1 CAR PARKING
www.CityRealEstateSF.com
OFFERED AT $1,399,000

Recently Sold Properties

1776 Green Street #302

3 BED · 3.5 BATH · 2 CAR PARKING
www.1776Green.com
OFFERED AT $7,300,000

2235 Beach Street #201

2 BED · 2 BATH · 1 CAR PARKING
www.2235Beach201.com
SOLD FOR $2,315,000

239 26th Avenue #101

2 BED · 1 BATH
www.239-26thAve101.com
SOLD FOR $815,000

23 Scott Alley

2 BED · 1 BATH
www.23ScottAlley.com
SOLD FOR $739,000

The Stats

Inventory Continues to Dwindle Away in San Francisco

Over the past year or so, we've seen a very concerning trend emerge in San Francisco that many of the other submarkets in the Bay Area haven't exhibited. That is, inventory is dwindling away in San Francisco, especially within the single-family home market. While many submarkets throughout the Bay Area are seeing a resurgence in inventories, as sellers begin to list their homes again, sellers in San Francisco remain resilient in holding onto their properties. This has led to a 15.87% year-over-year decrease in active single-family home listings and a 7.70% decrease in the number of condo listings!

Single Family Homes Fetch the Highest Percentage of Original Price We've Seen in Two Years

Due to the lack of supply on the market, single family homes are fetching well above asking price when they sell, making it a profoundly difficult market for first-time home buyers. The average single-family home listing sold for 113.3% of the original asking price in February, marking the highest level we've seen since May of 2022! It is important to note, though, that we're not seeing the same phenomenon in the condo market, as most condos sell either at the listing price or slightly below the listing price.