Here is the link to this month’s data charts: Market Report Flipbook

Dear Clients, Colleagues and Friends,

While the rest of the country is lagging in real estate sales, San Francisco is still booming. We have experienced our usual summer slowdown, although it started later than usual, in early July rather than beginning of June, and sales continued through the end of June at a surprisingly fast pace. Now with the fog wrapped around the city and many people still on vacation, we tested the market by launching two new Pacific Heights listings (one condominium, one single-family home) this past weekend, and both were absolutely mobbed and are in contract for well over asking price (even above the sellers’ aspirational price goals). All signs point to a robust fall market, as long as we have some more inventory to show buyers. The time is now to get your pre-approval ready, get underwritten to have a more competitive offer package, and know that the bulk of our inventory for the rest of the year will come on the market in the next six weeks. Don’t wait for something better!

Looking ahead, geopolitical pressures, rising inflation, high mortgage rates, and dips in the stock market point to the fact that this San Francisco-specific market peak can’t last forever. The question is, how long do we have until prices drop again? Sellers would do well to get their properties on the market before the impending IPOs, as many economic studies have shown that the most home price surges happen before an IPO occurs. Potentially another surge could happen the following spring (6+ months) after an IPO occurs, but that has historically often been tempered by outside market factors interfering with the surge (pandemic, dot com bubble, etc.). If you’re on the fence or worried it will take too long, our team and our vendors can get your place market-ready in a matter of weeks, not months.

For single family homes, the median sales price increased in July (25.2%) year-over-year but all indicators (median sales price, median price per square foot, closed sales and pending sales) fell month by month in July as compared to June, which is expected due to the summer slowdown. Inventory fell 40.9% year-over-year, so we are really seeing a tight market at the moment.

Condominiums are catching up; the median condo sales price increased to 13.6% year over year and 3.1% from June. The average days on market continues to decrease (down 38% year over year) and the number of closed sales increased 25% year over year but dropped 14% from June. As is typical, the highest price per foot for condos is seen on the north side of town.

Luxury homes continue to attract a lot of interest, particularly those that are move-in ready and don’t require extensive renovation or upgrades. As an example, 3140 Pacific, a lovely single-family home, came on the market at the end of June, right before July 4th so really the end of our selling season, was listed at $7,495,000 and sold for $12,000,000, 60% over the asking price and almost $3,000/sq. ft.!

Here is the link to this month’s data charts: Market Report Flipbook

Best,

Team Hatvany Kitchen

Nina, Natalie, Vanessa & Paul

San Francisco’s #1 Real Estate Team, 2017-2026