July was a good indicator of where the San Francisco single-family home market stands now in light of rising interest rates.
179 single-family homes sold in the last month at a median price of $1,670,000, down from July 2021 in volume (247 sold) and median price ($1,850,000).
Though this doesn’t seem like the type of market wherein buyers are inclined to bid way over asking, some buyers were apparently not that affected by interest rate hikes.
Big overbids continued in July. A total of 36 homes closed for 20% more than list price, most commonly in the Sunset and larger homes in the southeast neighborhoods like Excelsior, Mission Terrace and yes, even Little Hollywood got in on the act.
Otherwise, the citywide overbid average was only 8.85% vs 13.70% last July. This tells me that the market is cooling a bit and may be coming down from a single-family home-buying frenzy.
Prize for the top overbid went to the buyers for 1530 44th Street, a 3BR Spanish-style house listed for $1,895,000 that closed for $2,860,000—or 51% over asking (see photo above, courtesy Compass).
Cash sales were low key, with only 25 homes changing hands without loans involved.
Homes for under $1M were a tough nut to crack, with only ten houses selling in that range. What can you get for up to $1M? Small one- to two-bedroom homes in neighborhoods like Ingleside, Bayview, and Visitacion Valley.
The least expensive home sold was a contractor special in Bayview for $650,000. And the most expensive? 2556 Filbert, a 3BR view house sold for $14.5M that came with conceptual development plans by John Maniscalco Architecture.
What’s on tap for the house market? Many sellers will likely wait to put their properties on the market after Labor Day, but we may see a few new listings from homeowners who don’t want to compete with the September inventory spike that inevitably transpires each Fall. Single-family homes in San Francisco are always popular, so serious buyers seem to be out there regardless of the time of year.
[All data courtesy of the San Francisco Multiple Listing Service.]