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San Francisco's median home price in 2022 drops for first time in a decade
Jan 11, 2023
San Francisco's median home price in 2022 drops for first time in a decade San Francisco
By   Internet
  • City News
  • Median Home Price
  • San Francisco Home Prices
  • San Francisco Housing Market
Abstract: The median sales price in San Francisco fell 1 percent year-over-year to $1.78 million in 2022, the first decline in more than a decade, according to a Compass report Monday.

The tech hub's real estate market peaked in the second quarter of last year, ending a 10-year upward cycle brought on by the pandemic boom, said Patrick Carlsle, Compass' chief market analyst for the San Francisco Bay Area.

 

At its peak in the second quarter, the median sales price exceeded $2 million.

 

However, rising inflation and interest rates, combined with uncertainty in the financial markets, cooled the market considerably in the second half of the year.

 

In the fourth quarter, some 57 per cent of homes sold for more than their asking price, compared to 81 per cent in the same period in 2021.

 

This figure was 87 per cent in the second quarter, when the market peaked, the report said.

 

The cold market was particularly evident in the luxury sector, defined as homes priced at least $3 million or condominiums over $2 million.

 

Mr Carlisle said that when the pandemic boom first began, it was the affluent buyers of expensive homes that led the market, initially supercharging demand. Affluent buyers are now more inclined to stay put than buyers in the general market, which has completely reversed the momentum that started the pandemic boom.

 

In the fourth quarter, only 77 single-family homes sold in San Francisco for $3 million or more, more than half the 160 sales in the fourth quarter of 2021.

 

In the second quarter, 166 luxury homes sold, according to the report.

 

Luxury buyers tend to have more wealth tied up in the financial markets.

 

With the volatility in these markets, they have pulled back as they wait for further clarity on economic conditions, Mr Carlisle said. This is not to say that some very expensive homes are not selling, but the number of sales is down significantly from last year.

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San Francisco's median home price in 2022 drops for first time in a decade
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