San Francisco Real Estate Market Update

San Francisco Real Estate Market UpdateAs we head into our earliest days of spring it is a good time to take a look at the condition of the San Francisco real estate market. Traditionally real estate picks up all over the country as spring is America's peak real estate season. As we look at the market factors many real estate professionals believe that 2023 hit a post-pandemic low for real estate in San Francisco. Many people believe that the economy and social scene as well as media coverage also followed this pattern and that a new recovery is beginning to emerge.

San Francisco Real Estate Market Quick Facts

  • Active listings in the San Francisco area decreased 14% in month-over-month numbers. These numbers reflect both condo properties and single-family homes. These numbers are record lows for the San Francisco area.
  • San Francisco median single-family home and condo prices increased month-to-month from December to January. Numbers show an increase of 12.9% for homes and 7.3% for condos. The year-over-year numbers rose 18.2% for homes and 7.5% for condos
  • The supply of inventory when looking at the number of months of supply increased moving from December 2023 to January 2024. However, numbers still show a sellers market for all property types in San Francisco.

Housing inventory in San Francisco hit record lows

At the beginning of 2023, the housing inventory was following typical seasonal trends. In the winter San Francisco usually sees a significant decrease in the inventory of homes for sale. Condo inventory however has been decreasing since May 2022. 

Real estate sales in San Francisco hit a peak in May 2023 while inventory listings peaked in September 2023. The number of new listings available in San Francisco has remained significantly low and has made an impact on the lower amount of real estate transactions. December was met with a record-low number of new listings coming to the market. Moving into January the amount of homes listed could not keep up with the number of buyers looking for homes. However, homes coming into contract by month over month numbers increased by 37%, and year over year inventory new listings were down 27% and 29%. Despite this home sales have increased by 1% when comparing January 2024 to January 2023.

The median price of properties increased in January 2024

San Francisco home prices have not been greatly impacted by a rise in mortgage interest rates after the initial period of price correction that happened from May 2022 to July 2022. Since this time, the median single-family home and condo prices have remained steady around $1.5 million and $1.2 million for each property type.

January 2024 saw a median single-family home price increase of 13% and condos increased by 7% for month-over-month numbers. When looking at year over year numbers homes increased by 18% and condos increased by 8%. Many real estate experts expect that prices will stabilize through the winter. As mortgage interest rates are predicted to decline further many are expecting to see a rise in home values as the market is expected to heat up with more buyer interest. It is also expected that the continued low inventory in San Francisco will contribute to rising home prices. However, experts are expecting that 2024 inventory will come back to a typical seasonal pattern as compared to 2023.

No matter the market conditions in San Francisco with the right buying or selling strategy you can have success. Buying a home in San Francisco doesn't have to feel like an impossible and unattainable goal. Selling a home in San Francisco can be very successful with the right professional by your side. If you are looking for help buying or selling a San Francisco home I am here to help. Contact me anytime with any San Francisco real estate needs.

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