Not unlike the water drought affecting California, the San Francisco real estate market continued to endure an inventory drought in the second quarter of 2015, according to an analysis of data from the San Francisco Multiple Listing Service. In Q2 2015, total sales for condominiums fell from 882 in Q2 2014 to 828 in Q2 2015, a 6.1% drop. Sales for single-family homes remained relatively flat in Q2 2015. Low inventory throughout the city has hastened buyers to act quickly. Considering that in Q2 2011, a single-family home stayed on the market an average of 63 days, that average has steadily decreased in the last five years. In Q2 2015, the average days on market for a single-family home fell to a mere 24 days; a 17.2% decrease from Q2 2014 and a staggering 61.9% drop since Q2 2011.
The heightened pace and competition in the market also drove up prices in many districts. This momentum was especially evident in Districts 7 and 8, as the average price-per-square-foot for a single-family home increased from $1,228-per-square-foot in Q2 2014 to $1,505-per-square-foot in Q2 2015, a 22.5% jump. Condominiums in Districts 7 and 8 also saw a 19.3% increase in average price-per-square-foot, growing from $967-per-square-foot in Q2 2014 to $1,154-per-square-foot in Q2 2015.