Market Update for San Francisco
Here’s a snapshot of this month’s housing market in San Francisco across four key indicators: home prices, month’s supply, days on market, and the sales-to-list price.
- Prices for single-family homes have spent much of 2019 above the previous year, with single-family homes up 16% in some super desirable locations (remember too that data can be skewed because some sellers choose to list their homes well below market value to attract a lot of attention and hopefully multiple offers).
- Condo prices ended November in line with last year’s prices.
- What it means: Month’s supply is a measure of how many months it would take for all current listings on the market (including listings under contract) to sell at the current rate of sales.
- Worth noting: In California’s high-demand market, a “balanced” supply level is three months, which means there are three months of housing inventory on the market at the current rate of sales. Less supply favors the sellers.
It’s still a seller’s market in San Francisco. Supply levels are extremely low and tightening further compared to the previous year (especially for single family homes).
Days on Market
- What it means: The number of days a property has been actively listed on the market.
- Luxury vs. entry-level homes: With fewer buyers for luxury homes, the number of days-on-market is higher for this segment than for entry-level properties.
Sellers of luxury homes should have realistic expectations about how long it will take to sell their property. Days on market declined significantly from a year ago.
- What it means: The sale-to-list price ratio is the difference between the original list price of the home and the final sale price.
- Worth noting: Single-family homes typically have higher sale-to-list price ratios than condos.
Both condos and single-family homes are selling well above their listing price. Both buyers and sellers should be prepared to negotiate prices accordingly.
Why Finding the Right Real Estate Agent Is Essential
Now that we’ve reviewed the state of the market in this area, let’s talk about the importance of working with experienced, motivated, market-savvy real estate agents like us.
According to the National Association of Realtors, 89% of buyers and sellers in 2018 used a real estate agent or broker. What did buyers and sellers most expect from the help of an agent? We can look at the charts below.
Let’s start with buyers.
Even with more buyers looking at listings online, the number one service they want from their agent is help in finding the right home (52%). Our team tours and previews over 100 properties every week so that we can save you unnecessary legwork. Not to mention our longstanding relationships with other city agents- these relationships are often the deciding factor when it comes to our clients winning a home in a competitive situation.
Now let’s look at sellers.
In 2018 sellers primarily wanted their agent to help them market their home to potential buyers (21%). Other priorities include selling their home within a specific timeframe (20%) and offering guidance in setting the list price (19%).
Sellers said that agents helped them market their homes in one or more of the following ways.
For most of us, buying or selling a home is a significant life event. Buyers and sellers may assume that agents are all the same when it comes to their experience, insights, and market strategy.
Unfortunately, this assumption exposes clients to very real financial and legal risks. It MATTERS TREMENDOUSLY to your outcome and experience, so don’t take chances with part-time or bargain agents.