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.

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.

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.