Up until now within San Francisco, inventory levels – year-on-year – have been understandably massively down. Buyers are still out there looking which has meant that prices have not dropped despite the impact of the pandemic on the economy. Now that the May numbers are in, what does the landscape for property sales look like?
Firstly, we can take a look at what is happening Across Corcoran’s own business in terms of properties sold in (mainly) San Francisco on the buy-side since April:
- 44% of sales were multiple offers
- 23% under asking
- 52% over
- 25% at asking
- 38% were cash/non-contingent buyers
As of this blog posting, I’m waiting on yr-on-yr comparisons but the high percentage of multiple offers at over asking price would suggest a robust market in terms of prices holding up across the board.
However, these are TOTAL sales and not broken out by housing type, area & price range amongst other indicators. If we dig a little deeper and take a look at May MLS data we can begin to see the market in San Francisco softening, particularly for condos:
- SFH Inventory -35% yr-on-yr (178 new listings)
- SFH Median price dropped 3% from $1.685M to $1.63M
- SFH DOM is unchanged at 13 days
- Condos Inventory -6% (291 new listings)
- Condo Median price dropped 10% from $1.23M to $1.1M
- Condos DOM is now 33 days compared to 14 days this time last year
What we’re beginning to see is the definite drop in the desirability and price of condos in San Francisco. Across the properties I’ve been monitoring over the last 12 months, I’ve seen condos not holding their value in District 9 (eg. SOMA, South Beach) with condos bought in 2016 in particular selling at losses now. I’m also beginning to see this pattern in the more established neighbourhoods in District 5 (eg. Haight Ashbury/Mission Dolores) and even into District 7 (Lower Pac Heights).
In terms of how big this drop will be and how long it lasts for it’s way too early to say but the early warning signs are there.