A six month market snapshot for San Francisco's District 7 - includes Pacific Heights, Cow Hollow, Marina and Presidio Heights, all northern neighborhoods in San Francisco. I "pick on" this District often because it reflects a number of things that mainstream media misses over and over... one of which is that there are segments of the market that remain strong.
Click here for a 6 month report, February 27 2008 thru today, August 25th 2008. To attempt to compare only apples to apples this is only Condos, and only Condos with 2 bedrooms and 2 bathrooms.... one of the most popular market segments.
A few things to note:
1. 37 sales in 6 months = 6 selling per month
2. 6 either "Pending" or "Active Contingent" - so another 6 will close next month
3. 12 Condos listed For Sale now - or a 2 month supply.
HELLO - a 2 month supply? That's a crazy "Seller's market" isn't it?
Well, let's take a closer look:
1. the 37 sales took an average of 38 days to sell, and sold for an average of $788 per SqFt
2. the 12 that are For Sale have been listed for 66 days... 75% longer than those that sold, and the For Sale are asking $850 per SqFt or about 8% "too much"
So HOW do you read this market?
For one, a 2 month supply would be the envy of the hottest of hot Seller's markets... so it's HOT. However, you can't over price by 8% and hope to sell. Buyers are being savvy... and picky. Looking even closer, 6 of the 12 for sale have already had price reductions, yet the group is STILL 8% higher than those that Sold.
Keep in mind, this is the SLOW SEASON.... Buyers and Agents alike are on a lot of vacations. After Labor Day... there is typically a boost in sales and sales prices... so it should be interesting.
So think about this - how hot would the market be if all listings were priced accurately AND it wasn't the slow season?