Fall Selling Season Kicks-Off in High Gear

Autumn Selling Season Begins & New Listings Surge

September 2014 Paragon Report for San Francisco

Coming out of the summer slowdown, the last big sales season of the year runs from early September to mid-November (when the market usually retreats into semi-hibernation until mid-January). September is typically the single month with the highest number of new listings and this year, it started out with a bang: 300 new listings hit the market in the first week after Labor Day. As a point of comparison, May, the biggest new-listing month YTD, had a total of 720.

A list of San Francisco's most recent listings can be found here, easily sortable by neighborhood, property type and price: New Home Listings

This year's summer slowdown was bigger than usual: Compared to 2013, the number of listings coming on market dropped 12% and the number of sales fell 16% - these are large drops. Median sales prices also declined significantly from the spring peak, but summer price drops are normal due to seasonal factors. We've found it difficult and risky to make confident assessments of market trends during the summer or winter holiday slowdowns: One really has to see what happens in spring and autumn when sellers and buyers jump back in.

San Francisco, California & United States Markets

This chart compares Months Supply of Inventory (MSI) - a measurement of buyer demand against the supply of homes for sale; median Days on Market (DOM) - how quickly new listings go into contract; and median home sales prices, for the city, state and country. Typically, an MSI under 3 months is considered a seller's market; at an average of 1.5 months of inventory over the summer, San Francisco would be considered an extreme seller's market (which puts upward pressure on prices). San Francisco's median days-on-market figure is also extraordinarily low, and of course, our home prices are significantly higher than all but a few places on the planet.

Not shown on the chart, but another dramatic indicator of market conditions: Over the last 3 months the average SF home sale closed for 7% over the original asking price. (It hit 10% in May at the height of the spring frenzy.)

10 Factors behind the San Francisco Real Estate Market

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San Francisco Home Sales by Property Type & Price Range

Unlike the vast majority of other counties, condos and condo-like homes such as co-ops and TICs now predominate in the SF market, a trend that will only accelerate as dozens of (expensive) new-condo projects come on line in coming years. The difference in median sales prices between houses and condos has also narrowed to less than 12% - when condos used to be the significantly cheaper alternative. Condos also play a huge role in luxury home sales, often selling for the highest dollar per square foot figures in the city. TIC sales, almost an exclusively SF phenomenon, have been dwindling, but now sometimes command prices in excess of $1,500,000.

The relatively small quantity - and declining percentage of sales - of house listings in San Francisco has put significant competitive pressure on house prices. This effect has been cascading through the city's neighborhoods, from most desirable to historically less desirable, as families search for affordable options in a rapidly appreciating market. Very, very few new houses are being built in the city and those that are, are typically very costly.

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Seasonality & the Real Estate Market

In August we completed an analysis of how seasonality affects inventory, buyer demand and median sales prices. These 2 charts illustrate its effect on listings accepting offers and prices. Please note that other factors besides changes in values can affect median price fluctuations. For the complete report: Seasonality & Real Estate

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San Francisco Neighborhood Home Prices

We recently issued our semi-annual breakdown of San Francisco home sales by neighborhood, property type and bedroom count. This table is for 3-bedroom houses. For our complete analysis (8 tables): SF Neighborhood Values

For our updated map of home values around the Bay Area: Bay Area Map

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Selected Neighborhood Snapshots

Long-term Trends in San Francisco Home Values


Kelly Kang

Sotheby's International Realty, 117 Greenwich St., San Francisco, United States

My Background: As a former litigation attorney, I love counseling clients through a complicated process. And in this local real estate market, buying or selling your home could be a full-time job. As a busy professional, you’ll need an informed partner to help you through the process. From drawing up a personalized plan to celebrating the close, I will be with you every step of the way. As a previous Director of the San Francisco Association of Realtors’ Board, I am actively involved in the fast-paced San Francisco real estate market. I have an intimate knowledge of the City. Along with my background as an attorney and real estate investor, I am an agent who knows exactly how to find you your dream home and I will work hard to help you get it. My clients trust me to be their greatest advocate, whether I’m keeping them safe from the fine print or aggressively negotiating on their behalf. And when I’m not at the office: You can find me at the climbing gym on Crissy Field or climbing granite outdoors weekends with my husband and our puppy, Gracie. I love San Francisco and would love to share my love of this City with you.