The median price paid for a home in San Francisco measured a record $870,000 in May, up 24.1 percent year-over-year, 6.7 percent month-over-month. Keep in mind that a change in median price is a great measure of how the market’s appetite is changing and what people are buying, but it’s not a great measure of actual appreciation.
In terms of the sales volume for homes in San Francisco, according to DataQuick’s latest news release, a total of 530 properties changed hands in May, down 14 percent on both a year-over-year and month-over-month basis. That being said, we’re skeptical of DataQuick’s reported numbers for last May and peg the year-over-year sales decline at closer to 6 percent. An average of just over 600 homes have sold each May since 2004.
While the inventory level of homes and condos for sale in San Francisco remains down around 20 percent on a year-over-year basis (i.e., there’s a smaller pool of properties from which buyers can choose), listed inventory has remained relatively unchanged month-over-month (i.e., the supply of new listings is meeting the sales demand).
For the greater Bay Area, recorded sales volume in May was down 4.0% on a year-over-year basis but up 12.1% from the month prior with a recorded median sales price which was up 29.8% year-over-year, up 1.8% month-over-month.
Foreclosure resales and short sales made up about 21 percent of the Bay Area market in May, down from 24 percent in March and 42 percent a year ago.
As always, keep in mind that DataQuick reports recorded sales which not only includes activity in new developments, but contracts that were signed (“sold”) months prior but are just now closing escrow (or being recorded) and any properties that were sold “off market.”
∙ Continued Upward Trend for Bay Area Home Prices; Sales Dip [DQNews]
∙ San Francisco Home Sales Well Above Average In April [SocketSite]