San Francisco October '23 Real Estate Update Ascend RE

Inventory

In welcome news, new listings increased significantly in September. This is comparable to years past, with September marking the beginning of the Fall Market and inventory greatly expanding. Pending sales have also trended upwards and will likely continue to rise throughout October before slowing down over the November - January holiday season. However, pending sales are still roughly 10% below historical levels. Sales over the past 3 months have remained at low levels, but we are expecting a jump in October on par with historical data trends. Due to the inventory increase, September’s active listings were up. All in all, total available inventory levels are back to historical norms for this time of year, but low pending/closed sales indicate that inventory is sitting on the market for a longer period of time. Months supply is up to 4 months, which is the highest it’s been since November 2020. In fact, this is the 4th time since 2012 that it has been this high.

Sales Price

On average, we’ve seen sales prices continuously trend upwards since February. In San Francisco, single family homes show a slightly improved price point. Though at a stable price point, condos haven’t shown much sign of improvement. On average, homes are selling at just a percent above asking. The demand for single family homes has them selling for about 6% above asking. Less in demand, condos are going for 3% below their list price on average. Oddly, price per sqft has trended downward since its Spring uptick. Days on market have remained stable at around 20-30 days with single family homes tending to sell quicker than condos.

Conclusion

The fall market seems to be highlighted by lower than average prices, higher than normal inventory, and low buyer activity. We’ve told clients the following "if you can afford the higher mortgage, and you have good job security, now is an amazing time to buy.” Not all people are capable of buying at the moment. If you fulfill my two requirements above, now is one of the best opportunities to jump into the market. If you are a seller and ready to sell, it is unfortunately a difficult marketplace. Though change is a constant in this market, experts don't necessarily think prices will rise rapidly. We are hopeful that 2024 will bring positive market changes for homeowners. As always, don’t hesitate to reach out and schedule a consultation to go over your real estate needs!