Clients, friends, and colleagues:
It's been a hot start to the San Francisco real estate market in 2022. Demand has seemingly been unbothered by volatility in financial markets, rises in interest rates, and the recent war in Ukraine.
Competition over single-family residences and boutique condos in quality locations is fierce.
The bulk of demand resides in our more suburban sectors of the city, with significantly over-asking and record sales for prized property becoming seemingly common. We've noticed a spill-over effect into the higher density condo market in District 9, where intense bidding wars in the suburban sectors have made downtown condos look attractively priced (and attainable). With the recent news of many local employers requiring employees to return to the office, I anticipate demand (and thus prices) downtown to be on the rise.
Seasonally speaking, it's normal to see the number of new listings coming on market (and the number of listings going into contract) to continue to rise. These normally climb through spring, which is characteristically the biggest selling season of the year (Autumn is also a big selling season, but it's shorter).
This report reviews home values, interest rates, factors that can affect real estate markets, and how market cycles have broadly played out over the last 4 decades.
February 2022 stats in summary:
House prices + 11.6% year over year
Condo prices + 11.1% year over year
Houses selling 22% over asking on average
Condos selling 6% over asking on average
Inventory figures remain well short of 2021 (30%+ fewer inventory), but reflect similarities in numbers and seasonal trends to pre-pandemic figures (2020 and earlier).
For any questions about specific sectors of the market, please reach out to me directly.