Real Estate Market Update for December 2022
What’s New in San Francisco Real Estate
Analytics and charts from Compass
With the ongoing economic volatility, the real estate market is seeing a correction from the peak of a 10-year market upcycle.
Recent stats for home prices, appreciation rates, sales volume, overbidding, days on market, and months supply of inventory are all indicating a cooler market. That said, on the ground, houses in desirable neighborhoods are still selling quickly with multiple, competitive bids. However, with these market shifts, strategic pricing is imperative for sellers.
December is typically the low point for sales activity for the year. We expect to see more homes taken off the market to be brought on again in the new year.
Active Listings
The number of active listings on the market has been dropping as we enter the mid-winter slowdown period. As of December 1, 69% of active listings were condos, co-ops, townhouses and TICs, while 31% were single family homes.
New Listings Coming on Market
House Sales
Year over year, the median house sales price in November was down about 12%.
Year to date, house appreciation rates remained flat in San Francisco.
Condo Sales
The median 2-bedroom condo sales price was down about 6% in November, compared to this time last year.
Year to date, median condo price appreciation was down by 1% this past year.
Monthly Sales Volume - Longer-Term Trends
Year over year, home sales in November this year were down about 45%.
Listings Accepting Offers
The fall market this year did not see the typical spike in sales, largely due to concerns about the economy and rising interest rates cooling buyer interest.
Average Sales Price to List Price
While houses continue to have higher overbidding percentages than condos, both have dropped since the spring. This data offers the strongest case for accurate and strategic pricing for sellers.
Average Days on Market
Houses continue to have a much lower than average days on market than condos, although that figure has been climbing since the spring.
Price Reductions on Active Listings
Price reductions typically peak in mid-October, as was the case this year.
Overbidding of List Prices
In the last month, 44% of sales closed over the final list price, down from 73% in April.
Mortgage Interest Rate Trends
As of December 1, per Freddie Mac, the weekly average, 30-year interest rate was 6.49%, continuing to drop from the previous month.
The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information.
