Driven by increasing demand along with low inventory, median sales prices in the consistently hot San Francisco market rose in the third quarter, according to a report Wednesday by Paragon Real Estate Group.
The median house sales price in the city was $1.365 million and the median condo sales price was $1.175 million, the report said, an increase of 7% and 11% respectively, compared to third quarter 2016 prices.
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However, median house prices dropped $75,000 from the prior quarter, which was similar to decreases in prior years. But this isn’t unusual, the report said, "due to the seasonal decline in luxury home sales, as well as the typical overall market cooling during the summer."
The median condo price, on the other hand, increased $40,000 quarter to quarter.
San Francisco’s market continues to surge thanks to decreasing inventory and high demand.
"In 2015 our market peaked as far as heat, then things cooled down somewhat in 2016," said Patrick Carlisle, chief market analyst at Paragon, but in 2017 the market "went crazy," he said.
New house listings had their lowest third quarter in 12 years, down 46% from 2005 to 681. While new condo listings were down approximately 23% compared to the third quarter of that year to 831, according to the report. Both dropped year-over-year.
Paragon bases the report on sales reported to the Multiple Listing Service, and therefore does not include new development sales in its analysis.
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The months supply of inventory for the San Francisco house market in the third quarter was as low as in any third quarter during the past 12 years, the report said. For condos, the months supply of inventory was somewhat higher than houses but still historically low. Both are down significantly from the same quarter 2016 and both have less than three months of inventory, indicating a strong sellers market.
Listings aren’t spending long on the market either. The third quarter saw the lowest average days-on-market figure for houses since 2012, 30. Condos are spending a little longer on the market at 42 days, but both are down from third quarter 2016, according to the report.