Housing activity is a bright spot in the current economic recovery. Interest rates and new construction activity have been in the spotlight lately, fueled by concerns over tapering Federal Reserve activity and ongoing inventory constraints. Watch for continuing indications that more homes are selling in less time and at higher price points. Other anticipations will be more sellers returning to an inviting marketplace, which will help replenish neighborhoods with much needed inventory.
Here in San Francisco, new Listings were scarce in June, dipping down to 0.8 percent for single family homes and 2.7 percent for Condo/TIC/Coop properties. Pending Sales increased 16.0 percent for single family homes but decreased 9.9 percent for Condo/TIC/Coop properties. The Median Sales Price was up 22.4 percent to $955,000 for single family homes and 9.5 percent to $780,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 20.8 percent for single family units and 29.0 percent for Condo/TIC/Coop units.
The economy – which generates the jobs that fuel housing demand – continued to improve at a moderate pace during the second quarter of 2013. Budget sequesters and sluggish export growth have taken a back seat to housing recovery and stronger consumer spending. Interest rates could flirt with 4.0 or 4.25 percent and while the days of 3.3 percent interest rates are likely behind us, here in San Francisco local buyers are still snapping up listings as soon as they are available.
|June 2013||Median Price||Days on Market|
|Single-Family Homes||$955,000||34 Days|
Article from the San Francisco Association of Realtors