As we enter the fall selling season, historically one of the busiest times of the year, San Francisco’s housing market is showing renewed energy. While some key metrics reflect year-over-year declines, the overall picture remains encouraging. Lower mortgage rates, tighter inventory, and strong buyer competition, especially in the single-family segment, are setting the stage for an active fall.
In the single-family home market, the median sales price came in at $1,500,000, a modest 1.5 percent decline from last August. Homes are still moving quickly, with the median days on market recording at 14, one day faster than last year. The median price per square foot dipped 7.2 percent to $934, reflecting some adjustment in buyer valuations, yet competition remains intense. Nearly 70 percent of all homes sold above their asking price, with sellers receiving an average of 113.4 percent of list price, a gain of more than two percentage points compared to a year ago. The number of homes that went into contract slipped 3.9 percent while closed sales fell 4.4 percent, but inventory tightened significantly, down 13.3 percent to just 183 homes available at month’s end. With a month’s supply of inventory at 1.2, the single-family segment remains firmly in seller’s market territory.
The condominium market continues to move at a slower pace but is showing signs of renewed buyer interest. The median sales price declined 1.9 percent year over year to $1,020,000, while the median days on market stretched to 48, five days longer than last August. The median price per square foot softened by 3.5 percent to $956. At the same time, contract activity jumped 14.4 percent, a clear signal that lower borrowing costs are drawing buyers back into the condo market. Closed sales edged down 3.1 percent, and inventory decreased slightly, down 3.4 percent to 535 units. While less than a third of condos sold above list price, sellers on average still achieved 100.1 percent of asking, slightly stronger than a year ago. Months’ supply of inventory recorded at 2.9, reflecting a more balanced but gradually tightening environment.
Perhaps the most encouraging development is on the financing side. Freddie Mac recently reported mortgage rates at a 10-month low, creating new opportunities for buyers to re-enter the market or increase their purchasing power. This shift is already fueling stronger demand, offsetting some of the slower pace that characterized the summer months. Combined with steady economic growth and historically strong fall activity, lower rates are providing the backdrop for a competitive and energetic close to the year.
