December 2022 Housing Update

Newsletter

Your December Housing Update

Hey December, didn’t see you there! Can you believe how quickly time is flying in the busy holiday season? I hope you had a Happy Thanksgiving filled with good food and good company. It’s been nice to slow down and connect with family. However you plan to celebrate the holidays, I wish you a joyful and bright winter. Below I’ve included my summary of the housing market to help you make your 2023 real estate resolutions.

The Bottom Line

In the last two months we’ve seen a drop in inventory characteristic of this time of year following a strong September. It’s worth noting that November ended with a lower inventory in comparison to the last 4 years. Pending sales have seen an unusual flat line over the past 5 months. It will be interesting to see if the Spring market picks up pace. The average number of homes sold has also seen an unusually flat line through the fall season. Days on market have bumped up to 30 days on average which is normal for the holiday season. In November, available inventory decreased which is also typical for the season. Since August, this data has followed levels comparable to 2018/2019.

Overall, homes in SF are selling at a fraction of a percent below what they are listed for (99.7% of their listing price to be exact). Single family homes are currently selling at 3% over asking, but this is a big drop from an all time high of 23% over asking in April. Overall, 44% of properties are selling over asking, down from April’s 74% ratio. Price per sq ft has continued on a downward trend since March with single family homes seeing the most drastic decrease, which makes sense given their high Spring appreciation.

With all that being said, Spring is expected see a pick-up in the market. But many realtors aren’t advising clients to take a “wait and see” approach until after MLK weekend if they are interested in buying in 2023. The current lull is a great time to connect with lenders and get your pre-approvals in order. Sellers should start preparing their homes for market and getting their game plan together for the Spring 2023 boom. As always, reach out to me with any of your real estate needs and have a wonderful holiday season!