San Francisco County Housing Market Trends
San Francisco County's housing market is among the most competitive and expensive in the United States. As a densely populated and highly sought-after urban area, the county's real estate market is characterized by high demand and limited inventory, resulting in intense competition among buyers and soaring prices. In this article, we will explore the latest trends and projections for San Francisco County's housing market, including prices, inventory levels, and market activity.
- In Feb 2023, the existing single-family home sales growth was negative in SF county.
- The closed sales were down by 32.9% from the previous year and 2.0% from the previous month, according to C.A.R.
- The median price for a single-family home in San Francisco County was $1,465,000, down 22.9% YTY but up 5.8% MTM.
- The previous month's median price in San Francisco was $1,385,000.
- Last year's median price in San Francisco was $1,900,000.
The California Association of Realtors (CAR) has released its latest report on the San Francisco Bay Area housing market for February 2023. The report provides an overview of the current trends in the market, including median home prices, home sales, inventory, months of supply, days on market, and more.
Median Home Price
According to the report, the median home price for San Francisco detached homes in February 2023 was $1,465,000. This represents a 5.8% increase month-over-month (MTM) and a 22.9% decrease year-over-year (YTY). The increase in median home price for San Francisco detached homes by 5.8% MTM indicates that the demand for luxury homes is still strong, despite the slowdown in the housing market. The decrease of 22.9% YTY in median home price could be attributed to a shift in the types of homes being sold and higher interest rates.
The report shows that home sales for San Francisco detached homes in February 2023 were down by 32.9% YTY. This indicates a slowdown in the housing market compared to previous years. The decrease of 32.9% YTY in home sales for San Francisco detached homes in February 2023 suggests a slowdown in the housing market compared to previous years. This could be attributed to factors such as higher mortgage rates, affordability concerns, and a shift towards more remote work arrangements.
Inventory & Months of Supply
The unsold inventory for San Francisco detached homes in February 2023 was at 3.4 months. This represents an increase of 41.7% YTY and 17.2% MTM. The increase in unsold inventory for San Francisco detached homes by 41.7% YTY and 17.2% MTM indicates that there is more supply available in the market. This could lead to a shift towards a more balanced market between buyers and sellers, but the decrease of 32.9% YTY in home sales suggests that demand may have also decreased.
Days on Market
The median time on the market for San Francisco detached homes decreasing by -47.1% MTM and increasing by -22.9% YTY suggests that homes are selling faster than they did the previous month, but slower than they did the previous year. This could be due to a variety of factors, such as changes in the economy, changes in buyer behavior, or fluctuations in interest rates. A shorter time on the market could also indicate that there is high demand for homes in this area, but the slower YTY growth in median home prices suggests that this may not be the case.
What Lies Ahead?
With mortgage rates almost doubling since last year and still rising in 2023, it is expected that there will be a slowdown in the housing market. Homebuyers may find it more difficult to secure financing, and sellers may need to adjust their expectations for home prices. Investors may need to be more cautious when investing in the San Francisco Bay Area housing market.
In conclusion, the San Francisco Bay Area housing market is experiencing a slowdown in home sales, an increase in median home prices, and a decrease in inventory. The median time on the market has decreased, indicating that homes are selling faster than before. With rising mortgage rates, it is expected that the housing market will continue to slow down in the coming months.
San Francisco Condo Housing Market Shows Drop in Sales
The high inventory levels for condos and townhomes in San Francisco county have made it favorable for condo buyers. The current unsold condo inventory index is 5.5 months and the sustained supply is finally lowering the median prices of condos. People simply no longer wish to live in densely populated areas, especially apartment buildings where they have to share common areas. They want enough space for a home office or two and their own outdoor space as well.
The current median price for a condo in San Francisco County is $1,125,000, which is a decrease of 7.4% from last year. The price is up 13.3% from the last month's median price of $992,900. In Feb 2023, the rate of sales growth declined as buyers seem to be pulling out for a while. Condo sales in SF county decreased by 40.7% as compared to Feb of last year. However, sales jumped 37.3% from the previous month.
San Francisco Housing Market Forecast
Let us look at the price trends recorded by Zillow over the past year. Based on the data from Zillow, the San Francisco housing market is expected to continue experiencing a decline in home values. The average home value of $1,238,359 in January 2023 reflects a 10.7% decrease compared to the previous year. Additionally, the median time for a home to go pending is 41 days, which indicates a relatively balanced market between buyers and sellers.
Looking at sales data from January 31, 2023, the median sale-to-list ratio was 0.992, which suggests that homes are selling very close to their listed price. The percent of sales over list price was 38.6%, indicating that there is still competition for some homes. However, the percentage of sales under the list price was 51.7%, suggesting that many buyers are able to negotiate lower prices.
Overall, the San Francisco housing market is expected to continue experiencing a decline in home values, although there may still be competition for some homes. With a median time to pending of 41 days, buyers and sellers are operating in a relatively balanced market.
What Are Average Rent Prices in San Francisco?
As of March 2023, the average rent for a 1-bedroom apartment in San Francisco, CA is $3,000. This is a 3% increase compared to the previous year. Over the past month, the average rent for a studio apartment in San Francisco remained flat. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment remained flat.
- The average rent for a 2-bedroom apartment in San Francisco, CA is currently $4,000. This is a 0% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in San Francisco, CA is currently $4,995. This is a 10% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in San Francisco, CA is currently $5,900. This is a 7% increase compared to the previous year.
Average Rent in San Francisco Neighborhoods
According to data by Apartmentlist, San Francisco rents have increased by 0.7% compared to last month, and are up by 12.08% compared to last year. 0% of apartments in San Francisco cost less than $1,000 per month. 7% of apartments in San Francisco cost between $1,000-$1,999 per month. 22% of apartments in San Francisco cost between $2,000-$2,999 per month. 71% of apartments in San Francisco cost over $3,000 per month.
The most expensive neighborhoods in San Francisco are Pacific Heights ($3,799), Mission Bay ($3,708), and Northern Waterfront ($3,606).
The most affordable neighborhoods in San Francisco are Nob Hill ($3,393), Lower Nob Hill ($2,892), and Tenderloin ($2,515).
|Neighborhood||Average 1- Bedroom Rent|
|South of Market||$3,453|
|Lower Nob Hill||$2,892|
Why is Rent So High in San Francisco?
The high cost of living in San Francisco is attributable to the city's thriving tech industry and proximity to Silicon Valley. Given the high number of tech businesses likely to go public this year, the Bay Area could become even more pricey. Rent soared by more than 50 percent by the 1990s as the city's economy advanced due to increased tourism, the surge of innovative computer companies, and insufficient new home creation.
According to Apartmentlist, using the 30% rule, you can approximate the wage required to rent an apartment in San Francisco.
- If you are renting an average priced studio apartment in San Francisco, your annual salary should be around $99,440 or higher.
- If you are renting an average priced 1-bedroom apartment in San Francisco, your annual salary should be around $135,480 or higher.
- If you are renting an average priced 2-bedroom apartment in San Francisco, your annual salary should be around $181,440 or higher.
- If you are renting an average priced 3-bedroom apartment in San Francisco, your annual salary should be around $217,080 or higher.
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