Dear Friends,

2022 was a turbulent year for the US housing market, as inflation, soaring interest rates, and elevated sales prices combined to cause a slowdown nationwide. Affordability challenges continue to limit market activity, with pending home sales and existing-home sales down month-over-month and falling 37.8% and 35.4% year-over-year, respectively, according to the National Association of REALTORS® (NAR). Higher mortgage rates are also impacting prospective sellers, many of whom have locked in historically low rates and have chosen to wait until market conditions improve before selling their home. 

SAN FRANCISCO data is as follows*

 

Compared to Dec 2021, in Dec 2022:

New Listings were down 14.5% for single family homes & 50.3% for Condo/TIC/Coop properties.

Pending Sales decreased 7% for single family homes & 39.4% for Condo/TIC/Coop properties.

Median Sales price was down 7.5% to $1,564,000 for single-family homes and 26.5% to $955,000 for Condo/TIC/Coop properties.

Months Supply of Inventory increased 15.5% for single family units and decreased 5.6% for Condo/TIC/Coop units. 

 

*Please contact us for the San Francisco Association of Realtors complete data report.

 

BAY AREA

We've also included Snapshot links for the counties below from the California Association of Realtors. 

MARIN

SAN MATEO

ALAMEDA

CONTRA COSTA

 

OUTLOOK, per SFAR:

Economists predict sales will continue to slow and housing prices will soften in many markets over the next 12 months, with larger price declines projected in more expensive areas. However, national inventory shortages will likely keep prices from dropping too much, as buyer demand continues to outpace supply, which remains limited at 3.3 months, according to NAR. Even if prices fall, many prospective buyers will find it difficult to afford a home in 2023, as higher rates have diminished purchasing power, adding hundreds of dollars to monthly mortgage payments.

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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 New Year!