Positive Signs

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Following a slow second half of 2022, buyer demand appears to be rebounding so far in 2023, with open houses, offers, overbidding, and absorption rates all on the rise. Median prices have yet to recover from recent declines, but those drops are based on numbers from the peak of a 10-year market cycle. And it’s only a matter of time before increased demand and a continued inventory shortage drive up prices again.

The proverbial pink elephant in the room is unpredictable interest rates, which have put a chill on the housing market. Spring is typically the most active period of the year for sales, so we should learn more in the next few months about where we’re headed.

Market Snapshot: Santa Clara County

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January sales numbers are in, and it looked a lot like December – slow. But it’s typical for sales to cool off during the cold winter months. You can expect things to pick up in March, even with inventory and prices in a continued state of flux. Some things in the housing market never change!

San Francisco’s “Tech-xit”

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According to Compass market analysis, for the first time in a decade, median home prices in San Francisco fell by 1% from a booming 2021 to a cooling 2022 and came to rest at $1.78 million. Oddly enough, single-family homes are doing twice as well as condos, with more than 60% of sales closing over asking price. Recent tech layoffs certainly won’t help the condo market in months ahead. But it’s yet to be seen how big of an impact the “Tech-xit” will have.

Market Snapshot: San Mateo County

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The market continues to wake up on the cool side of the pillow, with inventory and median sales prices down year over year. Of course, the holidays are typically a slow period, and with the global economy still in recovery mode, we’ll see what the new year has in store.