Housing Market Update July 2023 -- Buyers Are Gaining Leverage in the SF Condo Market

Buyers are gaining leverage in the San Francisco condo market as supply continues rising. As you can see, the monthly supply of homes in July reached 4.7 months, up from 3.7 months in June and 3.2 months in May. This means that if no new homes came to market, it would take 4.7 months, almost 5 months, to sell out of all of the existing inventory. Typically, anything in the 4 to 6 month range is considered neutral or trending into buyer's market territory. Evidence of that shows up in the sale-to-list price ratios. You can see at the red line at the top, pretty much over the past year, condos have been selling on average for below ask. And days on market for condos is also a lot slower than single-family homes. Things stay on the market for close to 50 days over the last couple of months and in the mid to low 50s over the last 6 months. The average price per foot and the average sale price, represented by the blue and red graphs respectively, also fell last month. This is typical during summer, but because of elevated levels of supply, we shouldn't expect a major upward trend in condo prices like we can for single-family homes. Follow me for more updates and reach out if you want more information.