San Francisco Market Report Shows 'Home Sales Flat as Inventory Increases and Prices Soften'
Posted by Cathy Harrington — November 5, 2013
SAN FRANCISCO, CA - Homebuyers with cash continued to purchase luxury homes in some of San Francisco’s most sought-after neighborhoods in the third quarter of 2013, masking a slowdown in both home sales and the median price of homes sold during the third quarter of 2013, according to an analysis of MLS data by the research division of Better Homes and Gardens Mason-McDuffie Real Estate.
Citywide, 680 existing, single-family detached homes changed hands in the third quarter, down 5 percent from 716 homes sold in the second quarter and up only 7 percent from last year’s third quarter, when 637 homes were sold. The slowdown occurred despite a 26 percent quarter-over-quarter increase in the inventory of homes sold as measured by the number of homes listed for sale on the final day of the quarter. On that date, 370 single-family detached homes were available for purchase, up from 293 homes on the final day of the second quarter but down 14 percent from 433 homes listed at the conclusion of last year’s third quarter. Homes took a little bit longer to sell in the third quarter, with the average number of days a home was listed for sale before attracting a final contract to purchase increasing from 31 days in this year’s second quarter to 39 days in the third quarter – also up slightly from 37 days a year ago.
The median sales price of a detached home surpassed $1 million for the fourth consecutive quarter but declined by 3 percent from $1,201,920 in the second quarter to $1,163,556 in the third – 26 percent higher than a year ago, when it was $920,721. Districts with a median sales price above $1 million accounted for only 40 percent of homes sold in San Francisco during the third quarter, down from more than 50 percent in the previous quarter but up slightly from 39 percent a year ago.
All 10 districts experienced year-over-year increases in the median sales price, although only 6 of 10 reported median price gains on a quarterly basis. District 7 (Marina/Pacific Heights/Cow Hollow) once again recorded The City’s highest median sales price at $4,900,000 (up 22 percent from a year ago), followed by District 8 (Nob Hill/Russian Hill/Telegraph Hill) at $2,500,000 (up 51 percent from last year’s third quarter). District 9 (Inner Mission/Potrero Hill/South of Market) slipped back under the $1 million median sales price threshold for the quarter and District 10 (Bayview/Excelsior/Visitacion Valley) reported The City’s lowest median sales price at $617,000 (up 26 percent from the same period a year ago).
District 2 (Sunset) was No. 1 in home sales in the third quarter with 144 and was the only community to report an increase on both a quarterly and annualized basis. District 10 was close behind with 143 homes sold, while District 5 (Glen Park/Haight Ashbury/Noe Valley) recorded 93 homes sold, down from both second quarter 2013 and third quarter 2012 totals.
Looking ahead, homebuyers previously priced out of the San Francisco market or discouraged by repeatedly losing out to buyers with cash or more favorable offers may find slightly better conditions in the coming months, particularly if the inventory of homes available for purchase continues to grow and median prices continue to soften. Those requiring bank financing should be prepared to meet stricter criteria and take longer to complete a home purchase. According to Jim Caldwell, Manager of the San Francisco office on Union Street, “Homeowners with properties at or near “above-water” status who are considering selling now will want to select a REALTOR® with the marketing savvy and experience to aggressively price their home to attract and negotiate with qualified buyers.”
San Francisco District Guide: District 1 - Central Richmond, Inner Richmond, Jordan Park/Laurel Heights, Lake, Outer Richmond, Sea Cliff, Lone Mountain. District 2 - Golden Gate Heights, Outer Parkside, Outer Sunset, Parkside, Central Sunset, Inner Sunset, Inner Parkside. District 3 - Lake Shore, Merced Heights, Pine Lake Park, Stonestown, Lakeside, Merced Manor, Ingleside Heights, Ingleside, Oceanview. District 4 - Balboa Terrace, Diamond Heights, Forest Hill, Forest Knolls, Ingleside Terrace, Midtown Terrace, St. Francis Wood, Miraloma Park, Forest Hill Extension, Sherwood Forest, Monterey Heights, Mount Davidson Manor, Westwood Highlands, Westwood Park, Sunnyside, West Portal. District 5 - Glen Park, Haight Ashbury, Noe Valley, Twin Peaks, Parnassus/Ashbury Heights, Buena Vista Park, Corona Heights, Clarendon Heights, Duboce Triangle, Eureka Valley/Dolores Heights, Mission Dolores. District 6 - Anza Vista, Hayes Valley, Lower Pacific Heights, Western Addition, Alamo Square, North Panhandle. District 7 - Marina, Pacific Heights, Presidio Heights, Cow Hollow. District 8 - Downtown, Financial District, Nob Hill, North Beach, Russian Hill, Van Ness/Civic Center, Telegraph Hill, North Waterfront, Tenderloin. District 9 - Bernal Heights, Inner Mission, Mission Bay, Potrero Hill, South of Market, South Beach, Central Waterfront. District 10 - Bayview, Crocker Amazon, Excelsior, Outer Mission, Visitacion Valley, Portola, Silver Terrace, Mission Terrace, Hunters Point, Bayview Heights. * Days on market is the number of days a property was listed on the market until it went under contract at its final listing price. This may not reflect previous listings. **The median home price for the entire county is the mean of median home prices of districts within San Francisco County. Data are sourced from multiple listing services and are deemed reliable but not guaranteed. All percentages rounded to nearest whole number. Produced by the Research Division at Better Homes and Gardens Mason-McDuffie Real Estate.
About Better Homes and Gardens Mason-McDuffie Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2012, the company was named the 26th largest real estate services firm in the nation (REALTrends 500), and Number Two in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 6,500 transactions in 2012, generating $2.8 billion in sales volume. Better Homes and Gardens Mason-McDuffie Real Estate includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, Leading Edge Properties in Petaluma, Tri-Valley Realty in Pleasanton and Livermore, and Bahay Co. in Concord. Better Homes and Gardens Mason-McDuffie Real Estate is locally owned and has more than 1,200 real estate professionals with 30 offices in eight counties in the Bay Area and the Tahoe/Truckee region. For more information, go to www.bhghome.com.