After an exceptionally busy second quarter, San Francisco’s housing market eased into its typical summer slowdown in July. While activity tapered from spring’s pace, many market fundamentals remain strong, particularly in the single-family home segment. Historically, the summer months see fewer new listings and a dip in buyer urgency, but the fall season often brings renewed momentum, and all signs point to a competitive market ahead.
The median sales price climbed 2.1% year over year to $1,633,000, reflecting steady demand despite the seasonal slowdown. Homes are still moving quickly, with the median days on market rising just one day to 14, which is still exceptionally fast. The median price per square foot inched up 1.1%, showing continued price stability. While the number of properties going into escrow dropped 14.0% and closed sales fell 9.1%, inventory remains tight; the number of homes for sale on the last day of July dipped 2.6% to 185. The market remains highly competitive, with 7 out of 10 homes selling over list price and sellers receiving an average of 112.2% of asking. The Months Supply of Inventory (MSI) held at 1.0, underscoring a strong seller’s market.
The condo market experienced a more pronounced summer slowdown. The median sales price fell 11.9% year over year to $1,100,000, while the median days on market increased by 4 days to 41. Price per square foot dipped 1.9% to $974. Buyer activity softened, with properties going into contract down 12.0%. Interestingly, closed sales ticked up 3.8%, likely reflecting deals negotiated earlier in the spring. On the supply side, there were 10% fewer condos on the market at month’s end, with just under 3 in 10 selling over list price. Sellers, on average, received 100% of their asking price. The MSI recorded at 2.6, signaling a more balanced environment compared to the single-family market.
Freddie Mac reported that the average 30-year fixed-rate mortgage dropped to 6.63 percent, the lowest level since April. The decline in rates increases prospective homebuyers’ purchasing power.
While July brought slower sales activity compared to the strong momentum in spring, this seasonal cooling is typical for San Francisco. The single-family segment remains very competitive, with tight inventory and strong pricing power for sellers. The condominium market is softer but showing signs of stabilization, especially with inventory tightening and sellers holding firm on pricing.
With mortgage rates edging lower and fall typically bringing a fresh wave of listings and buyers, both segments could see a pickup in activity after Labor Day. For motivated buyers, this summer period may offer a valuable opportunity to secure a home before competition increases in the fall.
