Change is in the air this new year. Zephyr has announced our affiliation with Corcoran Global Living! This change in branding will bring additional resources, national connections, and a change in logo. However, Zephyr has not sold, and our core service model, leadership team, and the outstanding, local agents that have made Zephyr the number one locally owned real estate company in San Francisco for the last 42 years remain strong as ever. Through this new affiliation with Corcoran we are leading the charge for independent real estate companies to unite and continue to fiercely compete with big national companies. We are the same company and same agents you have trusted to meet your needs with local expertise.

While we are excited about this evolution, the market marches on. Last year, unrelenting rain drowned the first quarter. This year, January offers quite a few indications of a more temperate 2020 market.

Prices are Up (finally)
The median sales price (MSP) is up for both single family homes and condos. While these are not the gaudy numbers of previous years, an increase is great news. Since 2018, the MSP of single family homes is up 9.77%; that of condos is up 11.43%. 2018 and 2019 both had moments in which we were glad to break even, so this overall increase bodes well.

What We Lack in Inventory...
As always, San Francisco is slightly inventory challenged. New listings for January were the lowest since 2015. Compared to January 2018, active listings for both single family homes and condos were down over 20%.

The months supply of inventory (MSI) (1) also points to a decrease in inventory. The MSI of single family homes is 1.4 and that of condos is 1.9, a fall of over 17% for both property types. A balanced market would have an MSI between 4 and 6.

What we lack in inventory, we make up for in demand. Pending sales for single family homes are up 17.24%. While demand for condos has slipped 14.1%, when adding all San Francisco properties together, the percent of pending sales as compared to new listings is the highest it has been since January of 2015 (2).

A Mild Surprise
While January seems to be on the up and up, the number of properties that sold over the list price is down 8.23% for single family homes and 17.48% for condos. It follows that the percent of list price received has dropped 5.72% for single family homes and remains stagnant for condos. This is surprising considering the decreased inventory and stable demand. Additionally, the number of average days on market has increased 9.09% for single family homes and 28% for condos.

Both the drop in percent list price received and the increased days on market may have to do with the price at which properties are listed. Anecdotal evidence from our agents suggests that well-priced properties are selling very quickly.

Advice for Buyers and Sellers
San Francisco is a desirable city both for residents and investors. Low inventory and high demand imply that, even without skyrocketing appreciation, buyers are likely to hold and gain value. Interest rates are at historically low levels and likely to remain there for some time.

If you have been thinking of selling, the crop of eager buyers hungry for inventory may be just what you need. To make sure you receive the best possible offer, sit down with your Corcoran agent and discuss strategy.

(1) Months supply of inventory measures how many months it would take to sell all current inventory if no new listings come on the market.
(2) This proportional value may have more to do with a lack of inventory than a significant increase in sales, but it reassures us of our market’s strong and consistent demand for whatever inventory is available.

Get to know the  rich wildflower heritage of the extended Bay Area, and enjoy one more reason to live in Northern California. From mid-March to mid-May, thousands of spring wildflowers flourish around the Bay Area. Enjoy a picnic and hike around one of these Bay Area beauties abundant with seasonal wildflowers.  
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