San Francisco May '24 Real Estate Update Ascend RE

Inventory

The amount of new listings hitting the market is increasing to levels at or above pre-covid levels. Though we aren’t seeing the super high levels of new inventory hitting the market that occurred during the peak of covid, we are in a significantly more robust and strong market with regard to inventory compared to the depressed markets of 2023. In April, pending sales have also normalized, higher than 2015-2017 levels and just shy of 2018/2019 levels. In fact, the number of homes under contract has been increasing for 4 consecutive months during the Spring market. Following suit, the amount of homes sold are rising and fairly robust for Spring time. Months supply is sitting at around 3-months, meaning that we are still in a seller’s market but are still experiencing more inventory than we have generally seen. To sum it up, buyers may have more options and in some cases more leverage compared to years past.

Sales Price

In welcome news for homeowners, average sales price is trending upwards since hitting low points in Dec ‘22 and Jan ‘23. On average, single family homes are nearing a record high from 2022, while condominium prices have declined a bit in the past two months. The amount of homes selling for over asking price is steadily increasing with single family homes selling at 12% over list price. This is also the first time, on average, condos in SF have sold over their asking price since June of 2022! Overall, the percentage of properties that are selling over list price is on the rise, with over 50% of properties being sold over their asking. Price per sqft overall in SF has been on the up and up, pointing to a recovering market.

Days on Market

Days on market has held steady at around 2-3 weeks over the entire Spring season. Single family homes have been selling much quicker, at an average of less than two weeks while condos have taken a bit longer to sell.

The Bottom Line

Overall the market is trending toward a positive direction for sellers and homeowners. If you were hesitant in 2022/2023 to make a move, then it was beneficial as the market has grown stronger this year. For condominium owners, more time is likely needed for your segment of the market to improve. Buyers of investment properties, condominiums, or homes that need some work may still be able to find good options. At the moment, buyers are coalescing around finished properties which is resulting in increasing values for turkey-key homes. For more market information and guidance, click here to book a consultation with our team.