This year, the pandemic upended seasonality: Spring, usually the strongest selling season, saw a crash in activity; summer, which typically slows down – especially for luxury home sales – saw high demand; and the summer market accelerated into autumn. But supply has been accelerating even faster than demand.

Sales rebounded strongly from the early-spring pandemic crash: House sales are higher than in recent years and condo, co-op and TIC sales are at levels comparable to peak sales volumes over that period.

The most dramatic change is the increase in the number of listings for sale. Condo, co-op and TIC listings in MLS are at their highest point ever, approximately 85% higher than one year ago. House listings are also up, but much less dramatically, running about 20% to 25% higher than in autumn 2019.

Steady demand but soaring inventory has led to an increase in price reductions. When demand outweighs supply, buyers compete for listings, usually by overbidding. When supply outweighs demand, sellers often compete for buyers through price reductions. The condo market is probably seeing its highest number of reductions in history.

Long-term median sales price trends, 6-month rolling:

Year-over-year changes in median sales prices and average dollar per square foot values in selected home configurations. The condo market has been hit by significant declines in these 2 measurements.

Of the luxury home segments broken out in the chart below, the market for houses selling for $3,000,000 to $4,999,999 (red line) has rebounded very strongly over the past 6 months, hitting a new peak in sales (on a 6-month rolling basis). The other segments – luxury condos and co-ops, and $5m+ houses – have seen much smaller rebounds from shelter-in-place lows, and remain far below previous peaks.

Overbidding on house listings is well down from the crazed levels of recent years, but is still relatively common in more affordable districts. Some part of the overbidding percentages is caused by strategic underpricing of listings (to get buyers excited).

A breakdown of house sales, $3 million and above, by district over the past 12 months.

Since the pandemic hit, the softest condo markets have been those dominated by larger complexes and high-rises. The greater South Beach/ SoMa/ Mission Bay area – by far the largest condo market in SF – has the weakest supply and demand dynamic, followed by the greater Russian, Nob and Telegraph Hills area, and the Van Ness/Civic Center area.

As a statistical average, overbidding above the original list price has disappeared from the condo market. This ties in with the previous chart on price reductions.

Despite the fires, SF had a very active month in listings going into contract in August, hitting a high point for the year and matching the high points of recent years.

The number of active listings on the SF market has risen dramatically over the last few months, outpacing the increase in listings going into contract. However, there are significant differences between the house and condo markets, which are discussed later in the report.

With the increase in inventory has come a big jump in the number of listings reducing asking price. In some market segments, sellers are now competing for buyers, instead of buyers competing for listings.

The next two charts illustrate how the house and condo markets have diverged since the pandemic hit. The condo market is much weaker, comparing demand to supply. However, within the condo market, different neighborhoods are seeing varying dynamics, and hundreds of condos are still selling each month. More detail follows later in the report.

Regarding the next chart, the lower the Months Supply of Inventory (MSI), the stronger the demand as compared to the supply of listings for sale. Much of the SF house market (blue columns) remains firmly in "seller's market" territory, but the condo market's supply (red columns) is outpacing buyer demand, especially in the higher price segments.

Below is a comparison of median house sales prices, sizes and dollar per square foot values around the Bay Area this past summer.

A review of year-over-year changes in the number of luxury home sales around the Bay Area this past summer. Some other counties have seen astounding increases. SF luxury house sales increased by a more modest percentage; SF luxury condo sales declined year over year.

The following 3 charts illustrate aspects of the SF HOUSE market: Median house sales price trends by bedroom count; sales volumes and median sales prices by Realtor district; and the number of active house listings by Realtor district with an analysis of months supply of inventory.

The following 3 charts illustrate aspects of the SF CONDO & CO-OP market: Median sales price trends by bedroom count; sales volumes and median sales prices by Realtor district; and the number of active listings by Realtor district with an analysis of months supply of inventory.

In last month's report, we looked at era of construction for the city's houses. The chart below does the same for the SF condo, co-op and TIC market.

Gorgeous period details; bay window, fireplace, hardwood floors throughout. Enjoy a family meal in the formal dining room, or opt for dining alfresco style on the deck or garden, both directly accessed from the kitchen. The wide and functional interior foyer has direct access to the garage & the stairs up to the main living areas. The bath upstairs was recently remodeled, and custom built-ins were added to the primary bedroom for additional storage and closet space. The 1 car garage has a w/d. Close to Balboa Village.

Hello and Happy New Year!

Below are just two of the updated tables in our much longer analysis of home prices by property type and bedroom count for every neighborhood in the city. If you'd like the complete report, please let me know.