San Francisco: January '23 Housing Update

Ascend RE  |  January 8, 2023

Newsletter

San Francisco: January '23 Housing Update

Median Home Sale Price - San Francisco

Median Days on Market - San Francisco

 

Housing Supply 

The end of 2022 saw new listings drop for the third month in a row, at a number on par with 2019 pre-covid levels. This is to be expected since inventory typically peaks in September, however it’s worth noting that listings over the entirety of 2022 were noticeably lower than 2020/2021 levels. On a brighter note, 2022 was still a strong year for supply, with 15% more listings hitting the market compared to 2018/2019. Also par for the course, pending sales were down in December as well, which will impact January’s closing numbers. Monthly supply is also similar to 2018/2019 levels at 1.3 months worth of inventory, which would normally be indicative of a seller’s market.

 

Home Values 

Average sales prices continued on a downward trend since April 2022, slightly increasing in the Fall. Overall, the state of home prices in 2023 is very similar to pre-covid 2018/2019 levels. Single family homes are selling at slightly higher prices than in 2019, but condominiums are 16-17% below 2018/2019 price points year over year. Of course, during the holiday season, it’s normal for homes to spend a little more time on the market, with most sales closing from older listings left from September / October. The 2022 holiday season was no exception to this trend. It is not uncommon for many to remove their listings during these slow times and re-list in the Spring to take advantage of a busier market. Since April of 2022, more homes have been selling lower than their listing price. In fact, in December 2022 properties were selling at 2.7% less than their asking price, on average. It is interesting to note that this is the first time since 2012 that single family homes were sold on average at levels below their listing price. The year ended with 33% of homes selling over their asking price, down from peak levels in April of 73.5% selling over asking. 

 

The Bottom Line

Some media headlines may say the “sky is falling” for real estate, but our team has experienced this industry through many of its ups and downs and feels comfortable saying that 2022 was a pretty average year for most areas. Though we saw a rise in interest rates, the market has calmed from the Covid explosion of real estate sales. It will be interesting to see if 2023 sees another “normal” year despite higher interest rates. In our opinion 2022 was a year of transition, and 2023 is going to feel like previous years, especially for those that have kept a pulse on the market over the past 5 years.  

With real estate, slow, steady, and methodical is our approach. Be thoughtful in your purchases, don’t overreact when the market shifts, but be prepared to strike when the timing is good. As we've been saying for the past 4-6 months, right now is an ideal time to buy a home. Though conditions will likely remain good for buyers, they should be prepared for increased competition in the coming months. 

As always, we are your real estate resource in selling, buying, and investing in 2023, ready to advise you on your goals for the new year. Reach out anytime! 

 


Recent Blog Posts

Browse our blog posts to be in the know.

San Francisco May '24 Real Estate Update Ascend RE

Los Angeles May '24 Real Estate Update Ascend RE

East Bay May '24 Real Estate Update Ascend RE

South Bay Peninsula May '24 Real Estate Update Ascend RE

North Bay May '24 Real Estate Update Ascend RE

Upholding Equality: The Significance of the Fair Housing Act

Bay Area: Spring and Summer Gardening Guide

North Bay April '24 Real Estate Update Ascend RE

South Bay Peninsula April '24 Real Estate Update Ascend RE

East Bay April '24 Real Estate Update Ascend RE

Los Angeles April '24 Real Estate Update Ascend RE

San Francisco April '24 Real Estate Update Ascend RE

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?

Let’s Talk

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