SF home prices declined in two of the last three months

Open Listings tallied all the May 2016 home sales in San Francisco and the median home price has dropped to $1.25M. That's down from $1.29M the previous month (which was an all-time high for SF) and $1.26M in May 2015.

Loyal readers know that we're not big fans of median price gazing, but it's interesting to see how the downturn in high-end condos has dragged the median price lower.

March 2016 saw the first year-over-year decline in the past four years. This May 2016 decline means prices have dropped in two of the last three months.

San Francisco Median Home Prices April 2016

May 2016 - Signs of further weakness?

At the time of publication, there were 433 single-family homes and condos reported sold to the San Francisco MLS in May 2016. Their combined median sales price was $1,250,000. That's 3% below the previous month and 1% below May 2015.

Don't get too excited: we're still seeing vastly different markets depending on the home type and price point. Unless you're shopping for condos over $3M, properties are selling above the asking price with multiple offers. SF listings below $1M are selling for a daunting 13% over their asking price — a sign that affordability continues to decrease.

San Francisco Amount Sold Above Asking April 2016

Data sources: San Francisco MLS (dataset available by request). Median home prices prior to April 2016 via Paragon RE. Thanks to Patrick Carlisle from Paragon for confirming these findings.