November 2022 Housing Update

Newsletter

Your November Housing Update

The crisp air and wetter days have me feeling thankful for the Autumn season. I hope you had a Halloween full of treats and cute costumes. I am excited to create fun memories over the holidays with clients, friends, and family. What winter activities do you enjoy locally or otherwise? Feel free to share, I am always looking for ideas!

Below you will find an overview of what you need to know about our current housing market and a quick note on loan options which has been top of mind with the rise in interest rates. It is always my goal to empower my clients, so that you can make informed decisions about your real estate assets and goals. So grab a cozy blanket and enjoy the read!

The Bottom Line

As expected, available listings dipped in October since September is traditionally the peak of the Fall market when it comes to inventory. It is worth noting that this October has seen the lowest levels of inventory in the past 5 years. In more positive news, average sales prices have experienced an overall bounce back from the lulls of Summer. In general, prices are now at levels 10% under the peaks we saw in April. Market stabilization benefits everyone, so I am pleased to see this for my clients. Properties are selling faster, especially condos and this may be one of the first months since Covid that we are seeing pre-pandemic levels of condo inventory during the busy season. Other signs of market stabilization: properties are selling at an average of just 2% over asking in San Francisco and we are at up to 3 months of inventory which is typical for the area (although on the high side). Lastly, we’ve now had 3-4 months of relatively stable prices per sqft, a further indication of a stabilizing market.

Here are my final thoughts: October data strongly suggests that the market has hit a bit of a bottom for the past couple of months. Although properties are selling faster and prices are stabilizing, inventory is on the low side. If we see an increase in inventory, there is potential for prices to go down a bit. If interest rates continue to rise, that could also send prices down further. My take? The market has hit a new equilibrium, which is welcome news for both buyers and sellers. Sellers have a better sense of what to expect when they list their home and buyers now feel more comfortable writing offers when the market isn’t dropping (when the market is dropping, buyers usually want to wait until it hits bottom to write offers).

As always, I am here to chat about all things real estate and love to help. Have an awesome Autumn and fabulous Thanksgiving.