Summer was noticeably slower this year, as many buyers were deterred by higher interest rates and vacations. Though closed sale volume and median price were down from last summer, we saw plenty of competitive offer situations and overbidding in the face of low inventory.
Here’s the scoop:
Volume check: 490 single-family homes sold (June-August 2023), which was a 19% decline from last summer’s 605 homes sold.
Median price: Summer’s median price ($1,542,000) was 9.5% lower than that of 2022’s ($1,705,000).
Low volume led to vast overbids. Buyers snapped up our limited inventory, often involving hefty overbids. 88 of the 490 homes sold changed hands for 20% or more over asking, and 37 homes traded for 30% or more. Here were some of the top overbids, which seemed to span many neighborhoods (featured photo above of 593 Chenery courtesy SanFranRealEstate.com):
593 Chenery | Glen Park | $875,000 / $1,610,000 (84%+)
611 Baker | NoPa | $1,398,000 / $2,361,100 (67%+)
1535 Grove | NoPa | $1,699,000 / $2.5M (47%+)
65 Rossmoor | Lakeside | $1,795,000 / $2,650,000 (47%+)
2250 Cecilia | Inner Parkside | $1,199,000 / $1.7M (42%+)
3325 Pierce | Marina | $1,499,000 / $2,118,000 (41%+)
357 Missouri | Potrero | $1,995,000 / $2,750,000 (38%+)
Luxury buyer activity was flat. 61 homes sold for $3M or more this summer, with 19 of those closing for above list price. The high flyers were 70 Vicksburg, a 4BR Noe Valley Edwardian listed for $2.6M that sold for $3,276,000, and Pacific Heights’ 2572 Washington near Alta Plaza Park that closed for $4,528,000—26% over its $3.6M asking price.
Inventory check. There are 353 available single-family homes as of this writing, at a median price of $1.7M. 37% of these homes have been on the market for 30 or more days. And 61 homes are Coming Soon in the MLS.
Sellers: Summer comps are your best bet for accurate value. Even though inventory is tight, buyers are picky right now. But they’ll respond to well-presented homes with list prices that seem reasonable in comparison to recent sales.
Buyers: Competition abounds for houses in good locations that have solid floor plans and parking. Don’t underestimate the current market when it comes to these homes, as you’ll likely have company in offer situations.
[All data courtesy of the San Francisco Multiple Listing Service.]