Roaring demand in the luxury home segment |
Despite the ongoing health and economic crisis, the SF real estate market made a large recovery from the steep declines in March and April. More affluent buyers - those least affected by COVID-19 and unemployment - jumped into the housing market compared to any other segment. The number of high-end sales reached a new high, making up 30% of total home sales when it usually hovers around 18%. |
A new peak in the median sales price for single family houses |
A big rebound in buyer demand, particularly in the high-end segment, pushed the median sales price for single family houses to a new peak ($1,8M) in June. |
Meanwhile, the number of listings accepting offers rose slightly higher compared to a year ago. |
BUT......condos are getting less love |
The condo market has been weaker than the house market on the supply & demand metrics and median sales price. While the median house price has hit a new peak, the median condo price has declined from its 2019 high. It may be that prospective condo buyers - often younger and less affluent than house owners - have been more affected by the unemployment, or perhaps buyers are looking for more room to spread out with their own outdoor space after being cooped up for the last few months. |
And Outer Bay Area counties are getting a LOT of love |
Surrounding areas in Monterey (up 61%) and Santa Cruz (58%), followed by Sonoma (47%) and Napa (37%) counties are seeing an increase in the number of homes going into contract. Those that are relocating will have various reasons for doing so, but one factor that can’t be ignored is that these counties have among the lowest population densities in the Bay Area. Other factors that may play a role in this: length/strictness of shelter-in-place rules, home price differences, and second-home buying patterns. |
The bottom-line is that buyers are looking for more space to deal with the continued effects of shelter-in-place: a condo west of Van Ness Avenue, a single family house in the Avenues, or a home in the Outer Bay Area.
Stay Safe! Let me know if there's anything I can do for you, real estate-related or otherwise. |
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Compass is a real estate broker licensed by the State of California operating under
multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075,
1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented
herein is intended for informational purposes only and is compiled from sources deemed reliable
but has not been verified. Changes in price, condition, sale or withdrawal may be made without
notice. No statement is made as to accuracy of any description. All measurements and square
footage are approximate. Equal Housing Opportunity.
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