San Francisco’s median sold price for single-family homes has reached a historical high of $1,850,000. The number of homes sold remains higher than last year up slightly from last month to 226. This reflects the nationwide trend of more residential transactions year-to-date than any prior year. Current predictions indicate this pace will continue, and 2021 total sales will increase approximately 17% above the Us’s typical 5.5 million annual home sales.
Similarly, the number of sales in the San Francisco condo/TIC market is skyrocketing, up slightly from last month and a whopping 243.8% from pandemic levels this time last year. Median sales prices remain similar to last month at $1,200,000.
Both single-family homes and condo/TIC’s months of inventory remain incredibly low at 0.8 and 1.5 months, respectively. This trend can also be seen nationwide as inventory levels continue to fall.
Buyers continue to be motivated to purchase, especially with mortgage interest rates backing off from a slight rise in March. Federal Reserve Chair Janet Yellen recently expressed concerns about rising inflation. This, combined with the roaring economy, may lead to a rate increase by the end of the year. Rising interest rates put downward pressure on home sales prices by increasing monthly payments and reducing affordability. If this occurs, prices may start leveling off later this year.