Trends at a Glance

For single-family homes, here are the key figures for July 2023 compared with June 2023 and July 2022:

• Home Sales: There were 151 home sales in July 2023, compared to 204 in June and 176 in July 2022.
• Median Price: The median sales price for July was $1,450,000, showing a decrease from June's $1,590,000 and also down from $1,670,000 in July 2022.
• Average Price: The average sales price for homes in July was $1,830,962, down from $2,004,984 in June and $2,081,708 in July 2022.
• Sales Price/List Price (SP/LP): The ratio in July was 105.2%, a slight increase from 105.0% in June and down from 108.9% in July 2022.
• Days on Market: Homes took an average of 25 days to sell, consistent with June's figures, but longer than July 2022's 20 days.

For lofts, townhomes, and TICs, here are the key figures for July 2023 compared with June 2023 and July 2022:

• Condo Sales: July recorded 160 condo sales, compared to 197 in June and 220 in July 2022.
• Median Price: The median sales price for condos was $1,145,000 in July, compared to $1,100,000 in June and $1,200,000 in July 2022.
• Average Price: Condos averaged a sales price of $1,222,515 in July, down from June's $1,260,762 and significantly lower than $1,475,078 in July 2022.
• Sales Price/List Price (SP/LP): The ratio for condos in July was 99.4%, a slight decrease from 100.2% in June and down from 100.7% in July 2022.
• Days on Market: Condos took longer to sell in July with an average of 53 days, compared to 50 days in June and 48 days in July

Market Analysis

San Francisco's real estate market in July 2023 witnessed significant shifts, primarily characterized by declining prices and sales numbers. Let's break down these trends:

Single-Family Homes: When we dissect the numbers for single-family homes, we observe a clear downward trajectory. The median sales price came in at $1,450,000 in July 2023, marking an 8.8% decrease from June's $1,590,000. A year-over-year comparison paints an even starker contrast, with a 13.2% drop from July 2022's $1,670,000. The average sales prices follow a similar pattern, down 8.7% from June 2023 and a notable 12% drop compared to July 2022.

Condo Sales: The condominium sector isn't insulated from this trend either. Condo sales registered an average price of $1,222,515 in July 2023, which is a decrease from June's $1,260,762. The year-over-year difference is more pronounced, with a 17.1% dip from July 2022's $1,475,078.

The sales price to list price ratio presents an interesting narrative. For single-family homes, it stood at 105.2% in July, suggesting that buyers were willing to pay marginally above the asking price, possibly due to competitive bids or perceived value in select properties. On the flip side, the condo market witnessed a dip in this metric to 99.4%, hinting at a slight buyer advantage where negotiations may have tilted in their favor.

In terms of property movement, the average days on market showed some stability for homes, consistently staying at 25 days. However, condos experienced a slowdown with an average listing duration of 53 days, an increase from June's 50 days and July 2022's 48 days.

Momentum Statistics

The momentum in the San Francisco real estate market offers insights into underlying trends and potential future movements:

Sales Momentum: A nuanced look into sales momentum reveals differing patterns between homes and condos. For homes, the momentum rose from -43.8 to -42.2, indicating a slight resurgence or stability. In contrast, condos faced a downturn, with momentum decreasing by 1.4 points to -65.7.

Pricing Momentum: Prices play a pivotal role in gauging market health. For single-family homes, pricing momentum took a downward turn, falling by 0.5 points to -18. This suggests a continuing softening of prices or increasing buyer resistance at current price levels. Condos followed suit with a 0.5-point decline to -9.9, reflecting a possibly slower but consistent decrease in price acceptability.

It's essential to note that these momentum statistics are calculated based on a 12-month moving average. This method helps in ironing out short-term fluctuations, offering a clearer and more consistent view of long-term trends, free from monthly anomalies or seasonal variations.

Thank you for staying informed about the San Francisco real estate market. Feel free to reach out to us with any questions and further assistance.If you are planning on selling your property, please call us for a free comparative market analysis to help you understand the current market conditions and determine the optimal selling strategy.

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Information based on the 'The Real Estate Report of Local Market Trends for San Francisco' by Robb Fleischer, Broker/Officer for AMSI and Novo Real Estate Services.