Real Estate Market Update for February 2023
What’s New in San Francisco Real Estate
Analytics and charts from Compass
Reflecting the seasonally slow market in December, the data for January show the lowest monthly number of closed sales (sales typically close 3-6 weeks after going into contract). In mid-January, the market starts to become more active, building up to to the usually busy spring market.
After the price declines and drop in market activity in the second half of 2022, it is still too early to conclude if we will see a sustained recovery this year. The US inflation rate slowed for seven months straight, falling from 9.1% last June to 6.4% in January, according to the Consumer Price Index report released on February 14. However, this decrease is not as much as investors had hoped to see. The Fed will continue hiking rates, but it is possible they will not be as severe.
Some signs are pointing to a rebound in market demand, but how long it will be sustained or further improve is yet to be seen. On the ground, my colleagues and I are seeing much more activity from buyers, more disclosure requests and offers on listings, and open houses are drawing greater attendance—all positive indicators of a stronger spring market.
House Price Trends
The 3-month rolling median house sales price in January of 2023 is down 16.5% compared to January of 2022.
Condo Price Trends
Year over year, the median sales price for a 2-bedroom condo this month was down about 9%,
New Listings Coming on Market
As anticipated, January sees a seasonal increase in new listings coming on the market after the holiday slowdown in November and December.
As active and coming-soon listings increase, the majority of the new listings (71%) were condos, co-ops, and TICs.
Listings Accepting Offers
Aside from the aftermath of the pandemic in 2020, listings going into contract in Q4 2022 hit its lowest point since 2009.
Monthly Sales Volume - Longer Term Trends
Listings Expired or Withdrawn
Price Reductions on Active Listings
Sales Over List Price
Average Days on Market
Mortgage Interest Rate Trends
As of February 2, 2023, the weekly average 30-year interest rate was 6.09%, almost a full point down from its highs in November 2022. Since then, in response to the latest consumer price index data released and stubborn inflation, mortgage rates climbed to 6.5% on February 23.
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.
