San Francisco - Intero Real Estate Market Report - April 2016

Buy.Sell.Stay.

April 2016 Market Report San Francisco

Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix May 2016

Executive Insights Spring Smells Sweet for Sellers Like in years past, Spring seems to be the time when the gas pedal gets pushed down to the floor with regards to the Bay Area housing market. With kids getting out of school for the summer and families looking to make a move before the next school year starts, April tends to be the tipping point of the “red hot” real estate season.

Traditionally we see an increase in listings starting in April and this year was no different. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month.

But with this flood of inventory hitting the market you might think this is going to become a buyer’s market, but that doesn’t look like the case.

With the excellent job market and pent up demand for inventory, these increased listings are probably not going to silence the multiple offers and over asking prices in the desirable areas. But this influx of properties will allow some people that have been locked out of the market to dip their toes back in the buying pool.

Another couple of factors that might play into this increased listings scenario are mortgage rates and rental prices.

30-year fixed mortgage rates are forecasted by the National Association of REALTORS® to rise by nearly a point by Q1 of 2017. If buyers find a desirable home sooner rather than later, they could potentially save thousands of dollars over the life of their loan. Especially in the Bay Area where the median home price is close to $650,000. This might make buyers more aggressive than they would be if rates were forecasted to stay flat.

High rental prices could also impact the extra inventory that hits the market. With rents in some areas nearing the $6,000 a month range, this may have renters thinking seriously about becoming potential buyers. The rental scenario is especially interesting because it could impact some of the more moderately priced regions of the Bay Area.

So yes we’re seeing an increase in listings across the Bay Area, but how will that impact your buying or selling decision over the next few months? We still need to remember that at the end of the day, real estate will always be local. For this reason, we have broken down the data in these reports and provided an easy to digest analysis for the area you might soon call home.

So take a look and let us help you become a more informed home buyer or seller.

Market Highlights San Francisco

Total Homes for Sale

245

Luxury Homes for Sale*

46

*Homes for sale above $3 million.

Total Homes Sold

Average Days on Market

Average List Price

Average Sold Price

177 $2,228,000

38

$1,695,000

Inventory San Francisco

Total Number Of Homes:

For Sale

Sold

245 177

192 146

184

197 97

98

136

155

157 173

184 186

212 221

188 198

179 186

160 173

231

16-Jan

16-Feb

65

100

114

150

168

200

184 192

250

270

262

300

50 0 15-Feb

15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Mar

16-Apr

It is a Seller’s Market Property Sales (Sold) April property sales were 177, down 7.8% from 192 in April of 2015 and 21.2% higher than the 146 sales last month.

Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 61 units of 33.2%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 27.6% compared to the previous month.

Property Under Contract (Pended) There was a decrease of 12% in the pended properties in April, with 183 properties versus 208 last month. This month’s pended property sales were 3.7% lower than at this time last year.

Inventory By The Numbers Home Price Range

Homes For Sale

Year Over Year % Difference

< $500K

3

0%

$500K $1M

88

2.3%

$1M - $3M

108

56.5%

$3M - $5M

26

160%

$5M - $10M

16

100%

$10M +

4

-50%

Pricing San Francisco

Average Prices in $,000:

For Sale Price

Sold Price

3000 $2,470

2500 $2,023

$2,102

$2,177

$2,150

$2,082 $2,036

$1,919

2000 $1,613

1500 $1,507

$1,653

$1,726

$1,792

$1,724

$1,630

$2,339

$2,220 $1,902

$2,062

$1,496 $1,466

1000

$1,544

$1,675 $1,470 $1,480

$1,318

$1,597

$1,776

$2,228

$1,695

500 0 15-Feb

15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

The Average For Sale Price is Neutral The Average For Sale Price in April was $2,228,000, up 2.3% from $2,177,000 in April of 2015 and down 4.7% from $2,339,000 last month.

The Average Sold Price is Neutral The Average Sold Price in April was $1,695,000, down 1.8% from $1,726,000 in April of 2015 and down 4.6% from $1,776,000 last month.

Pricing By The Numbers

The Median Sold Price is Neutral The Median Sold Price in April was $1,360,000, up 7.5% from $1,265,000 in April of 2015 and up 0.7% from $1,350,000 last month.

Average Price Per Square Foot.

$849

-15.8% Month over Month

On The Market San Francisco

Average Days On Market

42

45 40

38

37

35

31

30

28

33

31

36 31

33

41

36

35

38

30

25 20 15 10 5 0 15-Feb

15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for April 2016 was 38, up 8.6% from 35 days last month and up 35.7% from 28 days in April of last year.

The Sold/List Price Ratio is Rising The Sold Price vs. List Price reveals the average amount that sellers are agreeing to come down from their list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. List Price of 111% is the same as last month and down from 2.6% % in April of last year.

15-Nov

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

DOM By The Numbers Home Price Range

Days on Market

Year Over Year % Difference

< $500K

0

N/A

$500K $1M

31

26%

$1M - $3M

38

26%

$3M - $5M

43

26%

$5M - $10M

234

94%

$10M +

75

83%