For the first time in seven years, the trend line shifted from up to down for single family home sold prices in San Francisco. They eked out a 0.5% increase* for the year.
Likewise, median condo sold prices peaked in March and ended the year with an annual appreciation of 3.6%.
In retrospect, 2018 was probably the start of the leveling off of the very frothy San Francisco housing market. This is a natural part of the real estate cycle, as the affordability gap widens between rising prices and wage gains. Real estate is a highly cyclical segment of the economy and a seven-year run of rising prices is a very long up-leg on that cycle.
Because inventory remains critically low, it is still a seller’s market. Expect 2019 to remain highly competitive for buyers, but probably with less exuberant overbid levels.
|Summary of the numbers for 2018*:*based on a 3-month rolling average||Single Family Residences (SFR)||% Change Year-over-Year||Condo/Loft/TICs||% Change Year-over-Year|
|Median Sales Price (US $)||$1,514,167||0.5%||$1,203,000||3.6%|
|New Listings (#)||2707||4.1%||3636||2.1%|
|Homes Sold (#)||2216||-2.3%||2933||3.4%|
|% of Homes Selling Over List Price||75%||-5.3%||57%||4.5%|
|% of List Price Received||110%||-2.8%||102%||0.1%|
|Months of Inventory||2.0||17%||2.2||5.6%|
|Median Days on Market (DOM)||16||14%||25||0.0%|