Pacific Union
Properties for SaleNeighborhood DataPacific Union Blog
Pacific Union
Quarterly Real Estate Report Q2 2016
Steven M. Gothelf
Broker Associate
THE MARKET IN UNDER A MINUTE
San Francisco
Q2 Market Pulse Video
Get a high-level look at what’s happening and what to expect in this insightful report into the San Francisco real estate market.
Watch the Video
NEIGHBORHOOD DATA
Stay Current With the Latest Neighborhood Data & Stats
San Francisco: Q2 Results
After several years of rapid price appreciation and frenetic overbids, we observed further signs of movement toward market normalization in San Francisco during the second quarter. Sales were still strong, but homes sat on the market longer than in past quarters – especially in the city's northern neighborhoods and popular Noe Valley. One main reason for this is that many sellers entertained unrealistic expectations and, accordingly, overpriced their homes. Consequently, bidding wars occurred less frequently than in the second quarter of last year, and price reductions became more commonplace.

The sales pace wasn't as brisk in the second quarter of 2016 as in the second quarter of 2015, although the drop-off wasn't significant. At the high end of the market, many move-up buyers stayed put, uncertain if their existing home would command enough to allow them to afford their target home. All in all, while the San Francisco market remains tilted in favor of sellers, it is slowly moving toward a more balanced state.

Looking Forward: Though there is still plenty of demand for San Francisco real estate, we expect further trending toward market normalization throughout the rest of the year, even when adjusted for the typical late-summer slowdown. The pace and depth of this calming trend may be amplified by global economic uncertainties, including the fallout from Britain's vote to withdraw from the European Union and the tightening of China's financial markets.
Median Sales Price
The median sales price represents the midpoint in the range of all prices paid. It indicates that half the prices paid were higher than this number, and half were lower. It is not the same measure as “average” sales price.
Single-Family Homes – Median Sales Price
Click to view larger chart
Condominiums – Median Sales Price
Click to view larger chart
Months’ Supply of Inventory
The months’ supply of inventory is a measure of how quickly the current supply of homes would be sold at the current sales rate, assuming no more homes came on the market. In general, an MSI below 4 is considered a seller’s market; between 4 and 6 is a balanced market; and above 6 is a buyer’s market.
Single-Family Homes – Months’ Supply of Inventory
Click to view larger chart
Condominiums – Months’ Supply of Inventory
Click to view larger chart
Average Days on the Market
Average days on the market is a measure that indicates the pace of sales activity. It tracks, on average, the number of days a listing is active until it reaches “pending” status, meaning all contingencies have been removed and both parties are just waiting to close.
Single-Family Homes – Average Days on the Market
Click to view larger chart
Condominiums – Average Days on the Market
Click to view larger chart
Percentage of Properties Under Contract
Percentage of properties under contract is a forward-looking indicator of sales activity. It tracks expected home sales before the paperwork is completed and the sale actually closes.
Single-Family Homes – Percentage of Properties Under Contract
Click to view larger chart
Condominiums – Percentage of Properties Under Contract
Click to view larger chart
Sales Price as a Percentage of Original Price
Measuring the sales price as a percentage of the final list price, which may include price reductions from the original list price, determines the success of a seller in receiving the hoped-for sales amount. It also indicates the level of sales activity in a region.
Single-Family Homes – Sales Price as a Percentage of Original Price
Click to view larger chart
Condominiums – Sales Price as a Percentage of Original Price
Click to view larger chart
LINKS
Access to Valuable Information & Services
Neighborhood DataProperties for SalePacific Union BlogChristie's Real Estate
Neighborhood DataProperties for SalePacific Union BlogChristie's Real Estate
Joint Ventures
The Mark CompanyProInsurancePacific Union Property ManagementTo deliver the most comprehensive real estate services to our clients, Pacific Union has partnered with three outstanding companies, ensuring that we exceed our clients’ expectations throughout the entire purchasing cycle and beyond.
Steven M. Gothelf
Broker Associate
415.345.3063
sgothelf@pacunion.com
www.SteveGothelf.com
1699 Van Ness Avenue
San Francisco, CA 94109
© Pacific Union, 2016. License #01866771
Pacific Union