San Francisco experienced the largest year-over-year decrease in median home sales prices of any metro in the U.S. in December, ending 2022 very differently than how it started. Prices were down 5.1% compared to the previous year, according to RE/MAX’s national housing report.
Even with prices down, though, and the “first buyers’ market in years,” real estate agent Colleen Cotter with Vanguard Properties said buyers have realized they can be more selective, which means some homes may linger on the market. “The ability to have contingencies and be more picky is a real rarity in San Francisco,” she said. “The good properties will still move quickly. Those with some challenges could sit for longer.”
The days of outrageous overbidding may also be behind us, at least for now. In December 2022, San Francisco’s close-to-list price was 99.1% — meaning homes are selling much closer to the listed price. If the percentage, calculated when dividing the sales price by the list price, is less than 100%, the home sold for less than the list price. If it’s more than 100%, it sold above the list price. In December 2021, the close-to-list price was 107%.
This is a huge change from the frenzied market we saw in 2021, when homes selling for more than $1 million over asking weren’t an uncommon occurrence.
Sales volume overall was down 41%, according to a recent Compass report analyzing the Bay Area market in December. Luxury home sales (defined as more than $3 million) were down even more at 60%, and ultra-luxury (defined as more than $5 million) was down nearly 70%. This means homes priced at more than $5 million that are still on the market may sit around for even longer or see big price reductions.
Meanwhile, a recent Zillow report named two Bay Area cities as the coolest markets in the country. At the bottom of the company’s “hottest housing market” list was San Jose at No. 43. San Francisco didn’t fare much better at No. 39.
Nearby Sacramento came in at No. 42. Charlotte, North Carolina; Cleveland; and Pittsburgh are predicted to be the hottest markets in 2023.
The number of homes available for sale has been a problem in the Bay Area historically, and this year looks like it’s going to be no different, Cotter said. “One of our biggest challenges of this year is going to be inventory levels and having enough quality homes,” she said. “Buyers have become more picky in this past year, but it’s not like we have an influx of inventory.”
Read More:SF home prices fell more than anywhere else in US last month
2023-01-23 12:03:39
