If you ever needed a visualization of the rising cost of homeownership, this chart should do the trick. Tracking median house sales price fluctuations by region since 1990, you can see a significant shift to the West and South and away from the Northeast, even as prices have appreciated across the country. Of course, the last spikes we saw in western sales led to the subprime bubble, so it’s good for investors to be cautious.
Has the home sales market in San Francisco finally begun to cool off, or is it just the chill of another atmospheric river? Inventory and median sales price were down year over year in December, and properties took a little more time getting scooped up. Meanwhile, condo prices in the City by the Bay saw a 9% increase from the same time in 2022, and opportunities were 10% more plentiful.
The numbers from December are in, and it’s a familiar story. But while sales of homes and condos are still below the same time last year, the gap is narrowing as inventory slowly returns. But buyers still need to act fast with homes spending an average of 23 days on the market. As far as the bottom line, median sales prices were up year-over-year, more so for homes (16%) than condos (5%).
Like we said earlier, you have to think big when it comes to home investments, and this chart says it all. While median house prices in Santa Clara County may have dipped a bit in 2023, they’re still more than double the pre-Recession peak in 2007. Want to see a more detailed report for your neighborhood? Request one today, and we’ll deliver it to your home or email.
According to the folks at Freddie Mac, average interest rates on a 30-year fixed-rate mortgage fell to 6.61% last week, the ninth consecutive week of decline, but still higher than one year ago (6.42%). Economic experts expect further declines heading into 2024, although the current dip has yet to spur an uptick in home sales due to a lack of inventory.
Here's a look at how key economic indicators fared in 2023:
