The San Francisco market improved in the second quarter, with a moderate increase in buyer activity and in overall prices. Mortgage rates have fluctuated this year but have stayed in the range of 6% to 7% during the course of the last few months. Given the increase in rates, we are seeing a high percentage of buyers bring more money to their purchase with larger down payments, or offers of all cash, to avoid the high cost to borrow.
Inventory is still far lower than this time last year (see graphic below), which has meant that buyers in the marketplace have fewer homes to choose from. The dearth of inventory is helping to lift prices despite higher mortgage rates. Still, only those properties that check all of the boxes in terms of location, amenities and features are moving quickly. Properties that have any significant objections can still languish if not priced attractively.
As always, if you are interested in more specific information about your neighborhood or property, don’t hesitate to reach out to me for answers!
Inventory of Active Listings, San Francisco County (1-4 units)
San Francisco's median price also climbed during the second quarter to $1,437,500 at the end of June. Median price is down 5.7% from this time last year.
Median Sales Price, San Francisco County (1-4 units)
The upward trend in prices is also reflected in the average price per square foot for the City. As of the end of Q2 the average was $1,040/sf. Despite the upward movement, per square foot prices are still down 9% from last year's numbers.
Average Price per Square Foot, San Francisco County (1-4 units)