Real Estate is an industry where you never know what will happen. The latest curveball is the vendor behind the San Francisco Multiple Listing Sevice was hit with a ransomwear attack and we are now in our second week of not being able to list new properties! The agent community has banded together to find workarounds to keep the market going. I joined the San Mateo MLS for example to be able to bring our current inventory to market. This is a reminder to be digitally diligent, nimble and ready to pivot when needed. This MLS snafu will lead to a new listing logjam which will lead to a grand release once the issue is resolved. Buyers be ready!
Market Update : San Francisco County
Generally speaking, the market slowed in July, a common seasonal trend, and August is usually
one of the quietest months of the year. Underlying economic dynamics – interest rates,
inflation, financial markets, employment – remain on the same general tracks as in recent months.
The Consumer Confidence Index jumped in July, hitting its best reading since October 2021: The
Index is now about halfway between its historic low in June 2022 and the pre-pandemic reading in
Across Bay Area counties, the year-over-year (y-o-y), 3-month-rolling, median home sales price
declines that commonly began in the second half of 2022 and peaked in spring have begun to
drop. Based on current trends, they will probably continue to dwindle, and perhaps disappear, in
the second half of the year.
The number of homes coming on market in the 7 counties of the San Francisco & San Jose Metro
Areas during the past 12 months dropped 32% from the previous 12-month period: 22,000 fewer
properties were put up for sale.** Along with the recovery in buyer demand and improvements in
the general economy, this has been a defining factor in 2023’s market conditions.
It is not unusual to see a substantial autumn spike up in SF listing and sales activity after Labor Day, lasting through late October or early November, before the market subsides for the big, mid-winter holiday slowdown, which typically lasts until early in the new year.
▪️ MY SAN FRANCISCO REAL ESTATE OBSERVATION:
Deals are still getting done but a seller has to be willing to meet the market. We have less transactions then we normally do at this time of year but buyers are willing to engage if they feel the price is within their perception of value. With this said, I do believe we have now reached the bottom of our current market cycle. There have been enough sales to set the new normal. Next up is the Fall selling season and I expect it to be a busy one. Inventory is coming and buyers who have either been sitting on the sidelines or haven't found their perfect home will be offered inventory by realistic sellers and then it is game on. There are of course economic forces still out there which could rear their ugly head. I will be very curious to see what will happen with the Q3 earnings reports. However, when it comes to real estate I believe there is more alignment between seller and buyer expectations. Sellers who are willing to engage the market will find there is a receptive market. I am very much looking forward to introducing my Fall Collection and being a part of the evolution of this amazing, dynamic city. Onward and upwards!
San Francisco Home Price Map.
This map reflects median home sales prices and dollar per square foot values in San Francisco neighborhoods, for 4 months sales reported through mid-July 2023 to the NORCAL MLS® ALLIANCE. New sales are constantly being reported which may change these calculations.
◼️ Read More: MARIN COUNTY HOME PRICE MAP. This map reflects 2023 sales reported to NorCal MLS Alliance in the 4 months through mid-July 2023 in Marin County by city, town or region.
**Per Realtor.com research data library for U.S. metro areas.