As you can see from the chart above, the first quarter of the year was a very strong quarter for residential real estate in San Francisco. Sales held steady, down just slightly from last years sales in the same three month period. So inventory remains unchanged but demand is up, which is why being a seller in the current market is so much fun and being a buyer is, well, not so much fun.
Year over year, the list price is up by about 18%, and in Q1 of 2012 homes – on average – sold for asking. This year, homes have been going an average of about 4% over asking.
Days on Market (DOM) is down substantially, decreasing 38% quarter over quarter. And as I mentioned, supply remains roughly the same as in 2012 so the decrease in DOM is not a result of fewer homes being for sale, but a result of A LOT more buyers being in the market. Yes, everyone wants to take advantage of low interest rates, but the bigger story (in my experience) is that buyer confidence in the economy and housing market has improved substantially.
What trends have you noticed in the first three months of the year in San Francisco real estate?
PS – This is why I’m apologizing to Alicia Keys.
Disclaimer: All data is from the San Franicsco Multiple Listing Service (MLS). Data is believed to be reliable but is not warranted or guaranteed. The data does not include all off-MLS sales, which would include sales of new construction directly from the developer (unless it was listed in the MLS, which is rarely the case). Your mileage may vary. If you’ve got a specific question about our data or methodology, don’t hesitate to leave a comment or get in touch.