2022: March San Francisco Real Estate Insider
As we enter the second week of March, the market continues to move at lightning speed. The continuing dynamic of strong buyer demand for an inadequate supply of housing remains. Volatility in the financial markets, troubling international events and Fed policy (to curb inflation) has yet to slow any market activity.
In the next few months we will see inventory climb, but not enough inventory to satisfy the demand. Most all homes in sub $5,000,000 category have received multiple offers and sold quickly. The $10,000,000+ category has seen much less activity – very similar to the fall ‘21 market. For reference, there are 15 homes available in San Francisco in the $10,000,000+ category. The median days on the market is a lengthy 173. Where are the buyers? Many are looking – but most are either (a) looking for perfection or (b) looking in other Bay Area markets. For reference, there was one $10M+ sale since the beginning of the New Year (vs. five for the same time period last year).
Let’s look at some key data points for the state of the market. As mentioned above, the demand has put the average sales price at ~122% of the asking price. I've seen some sales in the 140% range.
Still pondering the thought of "greener pastures" elsewhere in the Bay Area? The chart below provides some clarity on how much prices have increased in each county.
Mortgage rates are still increasing, but did see a dip (in rates) since the war in Ukraine started.