Hello Friends!
Summer is officially here & I hope yours is off to a wonderful start! With the spring market technically behind us, I figured it's due time for a deeper look into the latest market stats. Before we dive into the housing numbers, a quick tidbit from the NYT:
"The tech industry in San Francisco is more than a year into its worst slump in a decade with layoffs, a glut of empty offices, waves of migration to places with lower taxes, and worsening problems with drugs, housing and crime. But such busts are almost always followed by another boom. And with the latest wave of A.I. technology - known as generative A.I. - there's too much at stake to miss out.
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The latest wave of technology, generative AI, is slowly creating a boomerang for tech workers to come back to San Francisco. Investors have already announced $10.7 billion in funding for generative AI start-ups within the first 3 months of 2023, representing a 1,300% increase from the same time last year.
I've heard the above from both current clients and innovators in the tech industry. The access to capital, ingenuity, and talent remains seemingly unmatched in San Francisco for start-ups.
As always, please reach out with any questions. I'm always happy to help you in achieving your real estate goals, and am never too busy for your referrals.
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The trend of 2023 carries on: Median sales prices continue their recovery from mid-winter lows (Q4 2022), though prices remain far below the inflated peak prices we hit in Spring 2022.
The single-family market continues to be substantially stronger than the condo market, and the condo market in Downtown/SoMa/Civic Center areas - affected by a number of economic and social factors - is considerably weaker than condo markets in the rest of the city.
Median sales price (single-family) in SF:
February 2023: $1,500,000
The number of new listings coming on market and the number of home sales over the past 12 months were the lowest since the plunge from the pandemic. New listing and sales volumes have risen from their nadirs in mid-winter, but remain historically low. Average days on market dropped considerably in 2023 as buyer demand recovered, and the percentage of home sales closing over asking price increased. The average house sale is now, once again, selling well above its original asking price.
The average condo is selling slightly below list price.
Luxury home sales remain well down from peaks seen at the height of the pandemic boom, but significantly up from late 2022.
With bank crises, fed actions, inflation readings, and U.S. debt-default fears, interest rates have been volatile in 2023, with significant ups and downs. As of early June, 30-year fixed-rate mortgages are running about a quarter percent below 7%.
The 1st and 4th largest insurers of CA homes, State Farm and Allstate, have announced they will no longer write new policies in the state due to rising claim costs. It is too early to quantify the exact financial, political, and market effects of their actions, or if other insurers will follow suit. Similar issues have come up in other states, such as Florida and Louisiana, and it occurred with earthquake insurance in CA in the mid-1990s, leading to the creation of CA Earthquake Authority.
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*Seek advice and counsel of a medical professional and/or officials prior to going outdoors or any items mentioned in the above.
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Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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