Happy New Year from Dan Risman Jones

hello January 11, 2022

Real Estate

Happy New Year from Dan Risman Jones
Welcome, welcome, welcome to 2022. Low inventory here in San Francisco gave us Realtors® a short respite. We took advantage of the slowdown to celebrate Chanukah as a family. The kids made sure to light a candle each night and to get a present — I’m not sure which they enjoyed more. We also took the opportunity to take our first airplane trip in two years to Hawaii and to get in a little skiing in Tahoe, as well. I hope you also had a wonderful December and holiday season.
 
Hana, Maui
For months, I’ve noted we’ve been trending toward a market with a normal level of inventory. Now, in just one month, we went from slightly high inventory to very low inventory. Active listings (inventory) dropped by 42% from November to December. The last time inventory was this low was during the holidays in 2018. Additionally, while it’s normal for new listings to hit bottom in December due to the holidays, December 2021 took it to an extreme: It was the slowest month on record for San Francisco’s MLS. Just 134 units hit the market.
Incline Village, Lake Tahoe
Pending sales dropped by 50% going into December, the lowest level since the start of COVID. Historically for the month of December, it is a tad on the high side, but it is back into normal territory. Sold listings are dropping and should continue dropping through January due to the low inventory and low pending sales. Overall sales price dropped by 4% month over month, but a slight decrease during the holidays is considered normal. Housing prices, which have been decreasing since a June 2021 peak, dropped by 10%, while condominium prices actually trended upward. Days on market have increased substantially during the past 2 months, from 13 in October to 23 in December. Overbidding decreased to 6% over asking. I expect this good news for buyers to be short-lived, though, as this number is likely to increase again in the spring. Percent of properties that sold over list has trended downward for two months to 59%; normally, 60%–70% of properties in San Francisco sell over asking. Inventory is down to 1.5 months — the lowest amount since 2014.
 
Even as we reach two years in the COVID marketplace, surprises still abound. We have hit records for highest inventory ever seen in San Francisco and lowest number of days on market. In December, we hit some record lows for new inventory coming on the market.
 
Honestly, I think at least some of this slowdown was due to people just needing a break, be they homeowners or agents! I suspect the record low inventory won’t last, and we will see new homes hitting the market soon as spring season springs up. I don’t think inventory will be as explosive as last year, however. On the buyer side, I wouldn’t expect quite as many available options as last year, especially in the condo market. This may mean competition will be fiercer come spring.
 
It feels good to start a fresh new year, and I hope you will let us know if we can be of help to you in any way as 2022 unfolds.
 
We wish you and yours a very happy new year and good health.
 
Thanks,
Dan

Recent Blog Posts

Browse our blog posts to be in the know.

South Bay Peninsula March '24 Real Estate Update Ascend RE

East Bay March '24 Real Estate Update Ascend RE

San Francisco March '24 Real Estate Update Ascend RE

Los Angeles March '24 Real Estate Update Ascend RE

North Bay March '24 Real Estate Update Ascend RE

Spring 2024 Farmer's Market Schedule

San Francisco February '24 Real Estate Update Ascend RE

Los Angeles February '24 Real Estate Update Ascend RE

North Bay February '24 Real Estate Update Ascend RE

South Bay Peninsula February '24 Real Estate Update Ascend RE

East Bay February '24 Real Estate Update Ascend RE

San Francisco January '24 Real Estate Update Ascend RE

Los Angeles January '24 Real Estate Update Ascend RE

North Bay January '24 Real Estate Update Ascend RE

South Bay Peninsula January '24 Real Estate Update Ascend RE

East Bay January '24 Real Estate Update Ascend RE

San Francisco December '23 Real Estate Update Ascend RE

East Bay December '23 Real Estate Update Ascend RE

North Bay December '23 Real Estate Update Ascend RE

South Bay / Silicon Valley December '23 Real Estate Update Ascend RE

Los Angeles December '23 Real Estate Update Ascend RE

2023 HOLIDAY COOKIE DECORATING SOCIAL

South Bay / Silicon Valley November '23 Real Estate Update Ascend RE

Los Angeles November '23 Real Estate Update Ascend RE

East Bay November '23 Real Estate Update Ascend RE

North Bay November '23 Real Estate Update Ascend RE

San Francisco November '23 Real Estate Update Ascend RE

16 Terrifying Haunted Houses and Ghost Tours in the Bay Area

2023 Bay Area Holiday Schedule

Analysis: Homes Near Trader Joe’s Have Higher Values

North Bay October '23 Real Estate Update Ascend RE

East Bay October '23 Real Estate Update Ascend RE

South Bay / Silicon Valley October '23 Real Estate Update Ascend RE

Los Angeles October '23 Real Estate Update Ascend RE

San Francisco October '23 Real Estate Update Ascend RE

Live Work Play Here

For the month of June, we have supported LGBT Asylum Project, and are hosting this brunch in honor of all the great work this nonprofit does. Come join our teams for a… Read more

Hiring Licensed Real Estate Agents

Take your real estate career to the next level!

North Bay: January '23 Housing Update

What does 2023 have in store for the housing market?

San Francisco: January '23 Housing Update

What does 2023 have in store for the housing market?

San Francisco: March '23 Housing Update

Spring has sprung and the market is feeling a lot luckier!

East Bay: January '23 Housing Update

What does 2023 have in store for the housing market?

Move by HUD and FHA to provide greater homeownership opportunities

Have questions about the market? Our team is here to help and connect you to a lender.

Mortgage Rates Drop Prompts Buyer Demand

Mortgage Applications jump due to lowest rates since September

San Francisco Owners Required to Register Homes

March 1 Deadline for Rent Board Housing Inventory

Tenant Buyouts

What does it entail, and what does it mean for the residence owner going forward?  

Your Spring Guide to Bay Area Farmers’ Markets

Full Guide to 79 different farmers’ markets in San Francisco and beyond.

Los Angeles September '23 Real Estate Update Ascend RE

North Bay September '23 Real Estate Update Ascend RE

East Bay September '23 Real Estate Update Ascend RE

South Bay / Peninsula September '23 Real Estate Update Ascend RE

Let’s Talk

You’ve got questions and we can’t wait to answer them.