Taking the Market's Temperature

Before we get to today's City-centric post, just a quick reminder that we regularly update your favorite real estate blog with helpful info and links. Rather than bug you with an email for every new addition, we encourage you to check back often to see what's new. This week, without telling you, we posted a note about the impact of the Fed rate cut (see post below) and added new links to recycling resources in Marin (see link list to right). Lastly, don't be afraid to leave comments about postings that you found helpful, interesting, or even confusing. Your feedback will help us tailor your favorite real estate blog to your needs.

Now without further ado, some illuminating data on the SF market.

First, for those who don't know (and why would you?), the City is broken up into MLS districts (by numbers) and subdistricts (by letters). For example, the central part of SF is Disctrict 5. Noe Valley is district 5C. Click here to see a map of all City districts and subdistricts.

Second, one way we measure the temperature of a local market is by looking at the percentage of active listings under contract. In other words, how many listings have sold, but not yet closed? Generally speaking, when 35% or more of active listings are under contract, we consider this a seller's market. (This was widely experienced over the past five years.) When 25%-35% of active listings are under contract, we consider this a balanced market. When less than 25% of active listings are under contract, buyers are in the driver's seat.

On Friday, September 22, 2007, here's what the market looked like:

District 1 (Northwest) - 27% under contract

District 2 (Central West) - 32%

District 3 (Southwest) - 21%

District 4 (Twin Peaks West) - 29%

District 5 (Central) - 33%

District 6 (Central North) - 35%

District 7 (North) - 32%

Distrcit 8 (Northeast) - 32%

District 9 (Central East) - 29%

District 10 (Southeast) - 21%

Citywide, active listings spend an average of 48 days on the market prior to selling.

(Statistics include all single family homes, condos, lofts, and TICs. Multi-unit listings were not included.)

We will track this data over time so that regular readers can get a sense of which way the market is moving. Remember, markets are seasonal. Expect Decmeber to be cooler (read: more buyer-friendly) than September.

Comments welcome...