After two years of record-setting activity, there are signs the housing market might be cooling. High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs. The National Association of REAL TORS® (NAR) reports existing home sales were down 2.4% from the previous month, while pending sales fell 3.9% as of the last measure, extending the trend of recent months. Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.
SAN FRANCISCO data is as follows*
Compared to May 2021, in May 2022:
New Listings were down 24.8 percent for single-family homes and 30.4 percent for Condo/TIC/Coop properties.
Pending Sales decreased 22.5 percent for single-family homes and 29.3 percent for Condo/TIC/Coop properties.
Median Sales price was up 6.8 percent to $2,015,000 for single family homes but decreased 0.2 percent to $1,225,000 for Condo/TIC/Coop properties.
Months Supply of Inventory Month's Supply of Inventory decreased 32.0 percent for single-family units and 15.9 percent for Condo/TIC/Coop units.
*Please contact us for the San Francisco Association of Realtors complete data report.
We've also included Snapshot links for the counties below from the California Association of Realtors.
OUTLOOK, per SFAR:
The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8% from the previous month according to NAR, although supply remains down 10.4% compared to this time last year, with only 2.2 months' supply of homes at the current sales pace. As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation's housing crisis over the next 5 years.
Now, more than ever, it's crucial that Buyers and Sellers align themselves with a knowledgeable Realtor who understands the dynamics of our unique Bay Area market. If you or someone you know is looking to purchase or sell real estate, we’d love to put our knowledge to work to help you achieve your real estate goals while minimizing time, costs, and liability.
Sending warm wishes for a wonderful Father's Day weekend!