The sale of single-family homes in San Francisco fell to a five-year low in February, down 4 percent from just the month prior, new data from the Multiple Listing Service for sales in the city shows.
“As we noted five months ago, the recorded sales volume in San Francisco was being goosed by contracts for condos in new developments that were signed (‘sold’) many months prior but were closing escrow in bulk as the buildings came online in the middle of 2016. At the same time, signatures on new contracts were down 25 percent in 2016 despite an average of nearly 50 percent more inventory throughout the year and new condo sales dropped to a multi-year low in January,” the housing blog reports.
“And while many continue to finger a ‘lack of inventory’ for the anemic sales trend, listed inventory in San Francisco is running at a five-year high.”
Sales figures for February also showed that the median price paid for homes sold in February was 13.8 percent lower than the record high recorded for the city in April of last year, resting now at $1,120,000, as opposed to the $1.3 million it brought in then.
“Overall, Bay Area home sales dropped 3.3 percent on a year-over-year basis to 4,767 – the lowest February tally in nine years – with a median price of $649,000, which is 4.6 percent higher versus the same time last year,” Socketsite reports.
“Keep in mind that while movements in the median sale price are a great measure of what’s selling, they’re not necessarily a great measure of appreciation or changes in value and are susceptible to changes in mix, as opposed to movements in the Case-Shiller Index.”