August sales saw a big year-over-year dip in both price and volume, an outcome possibly fueled by higher interest rates and pent-up desire for travel. In other words, many folks were keeping a tight leash on their real estate spending money while others were more concerned with vacationing than buying or selling a house.
Only 183 houses closed in August 2022, down 26% from August 2021’s tally. And the median price slid 11% from $1,830,000 in August 2021 to $1,625,000 last month.
Though we had some big overbidding happening in June and July, it all fell flat in August with only 28 sales closing for 20% or more above asking. That’s a big change from August 2021, when there were 97 homes that sold for 20% or more over list price. Indeed, the average citywide overbid was 6.52%, about half of what it was in August 2021.
Prize for the top overbid went to the two-bedroom Edwardian at 1315 21st Avenue in the Central Sunset, a block from Golden Gate Park. Listed for $1,475,000, the home sold for $2.1M (photo above courtesy Sotheby’s International Realty).
The least expensive home sold was a tenant-occupied fixer on Quesada Street in Bayview that closed for $650,000. And the most expensive was 2110 Scott, a 6,875-square foot home with somewhat dated finishes located half a block from Alta Plaza Park. Buyers snapped up the home for $7.3M within two weeks of coming on the market.
Luxury homes—$3M+ by my standards—had a low-key showing. A bulk of the 27 homes in this range topped out at $4M. Noe Valley was particularly in demand, with ten of those 27 homes selling in that neighborhood.
The Upshot: August is a notably slower month in San Francisco real estate, and I’m expecting activity to ramp up starting this month through around Thanksgiving. That means more inventory, new buyers getting into the mix and homeowners looking to meet their goals of selling by the end of the year.
Sellers: Be patient and don’t expect your home to necessarily go into contract immediately—especially if you’re not in a prime location or your home needs updating or other work.
Buyers: Don’t overlook inventory that’s been sitting on the market for three weeks or more. Single-family homes are generally a solid investment when it comes to San Francisco, and this is a good time to land one without potentially competing with other buyers and having to overbid.
[All data courtesy of the San Francisco Multiple Listing Service.]