Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
In San Francisco, New Listings were down 9.0% for single-family homes and 36.8% for Condo/TIC/Coop properties. Pending Sales decreased 12.0% for single-family homes and 27.7% for Condo/TIC/Coop properties.
The Median Sales Price was down 17.8% to $1,650,000 for single-family homes and 7.7% to $1,121,500 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 42.9% for single-family units and 12.1% for Condo/TIC/Coop units.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.