San Francisco Real Estate Market Tracker

May 2018

Zephyr MarketTrackerZephyr
Median Sales Price
Avg. Days on Market
# Homes Sold
% List Price Received

The Psychology of Uncertainty: SF Market Update

In a world where the stock market dances, with dramatic dips and twirls, San Francisco real estate continues its journey into previously uncharted territory.

The Price Ceiling

The median sales price (MSP) for single family homes hit its highest point in February, at $1,700,000. It then slipped down to $1,650,000 in April. Condos followed a similar trajectory, with their MSP peaking at $1,268,000 in March and then dropping a little to $1,242,500 in April.

In the ultra-high-end market, the ceiling is around $7,000,000. After that the number of sales drop off precipitously. For buyers in this price range, the good news is that there is not a lot of competition. There is, however, a supply problem in this market since there are very few homes to choose from.

So, what’s with the MSP surge?

The steep climb between December and February cannot be attributed to one single cause. Certainly, the number of new listings continues to decline every year, and demand has not let up. Pending sales devour practically every new listing the moment it hits the market, and, with a 117.9% average of list price received, the competition to outbid other buyers is fierce.

This supply and demand problem is not new. However, the untamed stock market, rising bond prices, and climbing interests rates create a new pressure. While mortgage rates are still within the historically low range, there is no guarantee that this will last. Doubt often drives buyers into the market with a sense of urgency. Thus, the psychology of uncertainty may have driven the MSP surge in January more than any tangible market factors.

San Francisco
Sold for $1,510,000
75 Juanita Way, San Francisco
2BR // 1BA // Listed for $1,095,000
Sold for $1,950,000
741 Noe Street, San Francisco
3BR // 2BA // Listed for $1,595,000
Sold for $1,050,000
2040 Franklin Street, San Francisco
1BR // 1.1BA // Listed for $899,000
Sold for $1,432,000
55 Otsego Avenue, San Francisco
2BR // 1BA // Listed for $995,000

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Oliver Burgelman
Broker Associate
LIC# 01388135
Source: San Francisco Association of REALTORS® MLS (SFAR MLS). Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.

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