Last month saw greater pressure on the single family market, as compared to condominiums and TICs. While purchasers had bid approximately 5% over list price for condos/TICs, single family purchasers bid almost 15% over list price. It also took longer to sell condominiums, with a median market time of 26 days, versus 17 days for single family homes. There is even greater strength in the middle one-third of the single family market ($1.2MM - $1.66MM), with properties trading for 25% over list prices. The highest tier of the single family market ($3MM+) has also performed well as of late, with over 20 properties going into contract since the beginning of May.
The National Economy continues to show signs of strength, with Reuters News reporting that "The S&P 500 ended at its highest closing level in seven months, while the Nasdaq minted its seventh straight day of gains." The recent strength in the labor market coupled with inflationary pressure make it more likely that the Fed will hike rates this month. The 30-year mortgage rate is currently at a low point for the year, at about 3.6%.
Median Sale Price
May 2016 Median
Median Neighborhood Values
May 2016 Top Five Sales
The top five sales in San Francisco were in Cow Hollow, Pacific Heights, Russian Hill and Presidio Heights. These homes ranged in price from about $6 million to $11 million with an average of 11 days on market.