Maggie's Market Minute: A Spring Real Estate Revival

The housing market landscape in Q1 of 2023 has been complex, characterized by events such as repeated rainstorms, a regional banking crisis, stock market fluctuations, and tech layoffs. On a year-over-year basis the housing market remains weaker, although comparing Q1 of 2023 to the same period in 2022, which was the peak of a historic 10-year runup, means that many year-over-year comparisons will be distorted: Monthly sales volume is down 38% and luxury home sales are down 55% compared to Q1 2022. Median sale prices have dropped (in large part due to a significant decline in sales of the luxury market). Median house sales price was down about 18% and median condo sales price was down about 7% from Q1 2022. The spring selling season has been gaining momentum Despite the complexities since the beginning of the year, buyer demand is improving, overbidding percentages are rising, and the amount of time homes are spending on the market is decreasing. Most neighborhoods across the city are reasonably balanced, the central neighborhoods (Cole Valley/Eureka Valley/Noe Valley/Forest Hill/St Frances Wood/Miraloma) and Sunset are very hot, whilst SoMa/South Beach/Mission Bay are slower than usual due to higher supply levels and remote work. Buyers should not expect conditions from last winter Across all Bay Area markets, we are seeing a low flow of new listings as sellers hold off from listing their homes due to higher interest rates. The low number of new listings is holding back sales activity, and it may also be the secret weapon that is preventing price declines. Buyers should be aware that sellers may not be willing to negotiate as much as before. Where is the market heading? The two most important metrics to keep an eye on in the Spring market are interest rates and the number of new listings coming on the market. If interest rates move any lower, we expect buyer demand to increase accordingly. If sellers remain reluctant to list their homes, supply will remain low. When there is low supply and high demand for homes, it is likely that the prices will increase due to the competition among buyers. For a detailed report, please click on the Flipbook below.

Are you, or someone you know, ready to move? Let me know - I can help! Cheers, Maggie

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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