The Dangers of Overpricing in the San Francisco Real Estat…

Home Pricing Analysis: San Francisco Home Sales With & Without Price Reductions*

Home sales reported to SFARMLS, per Broker Metrics

Homes Sold: No Price Reduction

Homes Sold: 1+ Price Reductions

107.5% of LP

Homes requiring price reduction averaged 7 weeks longer on market to acceptance of offer.

100%

100%

92.5%

92.5%

92%

79days

Homes selling after price reduction averaged a dollar per square foot value and an average sales price approximately 7.5% below homes selling without price reduction.*

Homes requiring price reduction before selling averaged a sales price 8% under original list price, while those selling without reduction averaged 7.5% over original list price.

28

Price cut prior to sale

No price cut prior to sale

Price cut prior to sale

No price cut prior to sale

No price cut prior to sale

Price cut prior to sale

No price cut prior to sale

Price cut prior to sale

Avg. Sales Price to Original List Price Percentage

Avg. Days on Market to Offer Acceptance

Avg. Dollar per Sq.Ft. Differential

Average Sales Price Differential

*The sales-price-to-original-list-price and days-on-market analyses based on 13,000 home sales over 2 years through July 2022, averaging Broker Metrics monthly data. The average sales price and dollar per square foot analyses based on a Broker Metrics sample of 1100 house sales in 12 months through late-August 2022. Average sales prices adjusted for difference in average square footage. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers approximate.

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