San Francisco Real Estate Market Update January 2019

January 28, 2019

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%