Hope this finds you healthy and happy as we all continue to shelter in place. Last month, the San Francisco market saw a slight shift into more buyer-friendly territory. As inventory returns to relatively healthier levels, the number of properties going into contract is also increasing.
Our current market update below will review supply & demand statistics, median sales price trends, sales and values by city district, the luxury home market, and the dwindling effects of COVID-19.
While our virtual open houses are not what we are all accustomed to, we’re all adjusting to the new norm. If you have any questions anytime about the market or wish to discuss anything regarding your “home needs”, always feel free to contact us anytime.
Wishing you the best every day,
RicRoc & Callista
Supply & demand statistics, median sales price trends, sales and values by city, the luxury home market, and the ongoing effects of COVID-19
Generally speaking, market activity – as measured by the number of listings going into contract – continued to pick up rapidly in May, bouncing back from the steep plunge following the first shelter in place orders. However, activity in May, which is typically among the busiest selling months of the year, remained below May 2019 (except for the higher price segment, in which activity soared in May). With the easing of shelter in place, as well as the market learning to adjust to new circumstances, it is expected the recovery will continue to increase closer to normal. In fact, based on the strength of buyer demand, some analysts believe the coming months may be busier than in 2019, as sales activity that would have occurred in spring gets pushed into the summer instead.
Interest rates hit another historic low at the end of May.
Some of the more suburban counties, such as Marin, have been rebounding more quickly than counties with large urban areas (like SF, Oakland, San Jose), which were most impacted by COVID-19. There may be a number of factors at work, which are discussed in a chart within this report. But it is still too soon to reach definitive conclusions about major demographic shifts.
Note: Any statistics derived from closed sales – such as median sales prices, sales volume and days on market – reflect the state of the market 3-6 weeks ago when the offers were negotiated and accepted. They are lagging indicators, and May sales data to a large degree reflects the much softer market in April.