The real estate market in San Francisco saw a slight downward motion at the beginning of Q2 of 2023, for single-family residences. However, the condo market saw a slight uptick.
Average Sales for Single Family Residences: April: $2,148,830
March: $2,295,548
Down: $146,718
Average Days on the Market was 30 days.
Average Sales for Condos: April: $1,378,035
March: $1,244,057
Up: $133,978
Average Days on the Market was 54 days.
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In March 2023, Honolulu home prices were up 9.0% compared to last year, selling for a median price of $594,000. On average, homes in Honolulu sell after 78 days on the market compared to 56 days last year. There were 316 homes sold in March 2023, down from 467 last year.
Between January 2023 and March 2023, 40% of Honolulu homebuyers searched for homes outside of Honolulu, while 60% looked to stay within the metropolitan area. San Francisco homebuyers were the top metro who searched to move to Honolulu.
Looking at all of Hawaii, in March 2023 there were 5,062 homes for sale, down 10.6% year over year. The market remains in the seller’s court, much like the rest of the mainland.
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Most housing analysts expected 2023 to be a rough year for the U.S. housing market. In fact, among the 29 major housing forecast models, 24 forecasted a national home price decline for 2023.
But, so far, that hasn’t proven to be true.
Through the first few months of 2023, the U.S. housing market continues to show signs of stabilization. Existing and new home sales have inched up a bit this year, and homebuilder confidence has improved. Firms like Zillow, CoreLogic, and Black Knight have all reported positive month-over-month home price increases this Spring.
What’s going on? For starters, a lack of homes for sale, coupled with the market entering its busier Spring period, has, at least for now, pushed the national housing market back into equilibrium.
Don’t misread the above statement and think that the housing market is normal just yet. Some housing markets are booming right now, while others, like San Jose, are still passing through a home price correction. Even within a particular market, it can vary considerably.
According to Zillow, among the 1,563 California ZIP codes tracked, 6.7% saw home price increases between December 2022 and March 2023. The other 93.3% of California ZIP codes saw a home price decrease, if only slightly.
CoreLogic, a real estate research firm, expects U.S. home prices to rise 3% between January 2023 to January 2024. If CoreLogic is correct, then U.S. home prices would end 2023 back at price levels achieved at the height of the boom in June.
It is good to remember that the appreciation in California home values during the past 2 years was about 15%, so these slight declines should not deter buyers from jumping into the real estate market.
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Real estate agents throughout the California regions are reporting a rapid shift in the market. Six months ago in quarter 2 2022, 95% of agents who were surveyed characterized their market as a seller’s market. In Q3, that number had declined to 51%, and in Q4 it fell to just 30% of agents.
Home Buyers in this wonderful state of California, are beginning to see more favorable conditions when it comes to pricing and competition for homes as the market continues to rebalance. This is in sharp contrast to the hot real estate and lending markets that we witnessed from 2020 to mid-2022, when agents consistently reported a buyer’s market at a rate of only 1%-2%.
An example of this market shift can be found in a study where 64% of agents say that most homes in their market are not getting multiple offers. This is reminiscent of the trend that began in Q3 2022.
Nearly 95% of all agents surveyed reported that the average days on the market for listings in their area is increasing. But because housing is retaining much of the staggering equity gains of the past couple of years, and the increasing interest rates affecting affordability, the situation isn’t a buyer’s paradise yet.
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If we look specifically at the Sonoma County Real Estate market from late 2022 through mid-April 2023, we can see that buyer demand seems to have rebounded from the historic mid-winter doldrums. The signs that things are looking up include the percentage of listings going into contract, overbidding picking up, and the days on the market decreasing.
The median home price in the 10 Northern California counties during the past 4 months through mid-March 2023 are indicative of a robust real estate market:
San Mateo County: $1,550,000
San Francisco County: $1,400,000
Santa Clara County: $1,393,000
Marin County: $1,248,500
Santa Cruz County: $1,150,000
Alameda County: $968,000
Sonoma County: $750,000
Monterey County: $702,500
Contra Costa County: $670,000
Solano County: $538,000
We have entered the seasonal period where inventory begins to pick up and some counties are even seeing selling prices exceeding asking prices.
If you need help with a mortgage loan because you need a fast closing or your credit is not up to par, give Sun Pacific Mortgage a call to see if you qualify for a private mortgage from us. You can reach us at 707-523—2099 or find us at www.sunpacmortgage.com.
Came across this very interesting & informative article by Clare Trapasso earlier this month, and feel impelled to share:
Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?
Well, not exactly. It all depends on what they’re hoping to purchase.
Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.
“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”
Competition for turnkey homes in good school districts remains fierce.
“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.
Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac. So, buyers don’t have much room in their budget for costly repairs.
“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.
During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from. Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.
“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them. But those days seem to have ended, at least for now.
There you go, some information to consider when advising your Home Buyers and Borrowers on what’s the best move for them to get a new home loan to buy or to refinance, throughout California!
I always find that knowing what’s happening with the real estate market is beneficial towards assisting Homebuyers and Borrowers make better decisions. Keeping abreast of this information is also helpful when working with licensed peers, to better work together to help clients.
The following report includes both single-family and condominiums in some popular counties:
Marin County:
Inventory was 46% (211 homes) below January 2022, but only 4% below December 2022.
New sales were 21% (99 homes) below January 2022 and were 29% above December 2022.
Napa County:
Inventory was 43% (78 homes) below January 2022 but 3% above December 2022
New sales were 9% (43 homes) below January 2022 and were 54% above December 2022
Mendocino County:
Inventory was 8% (210 homes) below January 2022 and 13% below December 2022
New sales of 36 homes in January 2023 were slightly above the sale of 35 homes in January 2022 and slightly below the December 2022 level of 37 homes.
Lake County:
Inventory was 13% above the inventory in January 2022 and 2% below the inventory last month of 357 homes.
Closed sales in January were 39% below January 2022 and 32% below December 2022
Solano County:
Inventory was at 436.
223 homes sold and closed in January 2023 while historically 500 sales occur per month.
What we can conclude from this report is that while sales and inventory are well below the levels of January 2022, they definitely look better for most counties than December looked.
Real estate experts expect the Spring will bring better reporting numbers with more inventory and more buyers looking for a less competitive market than they experienced during the last couple of years.
I look forward to a busy 2023 in the real estate and lending markets. Hope you do too!
Visit our website at www.sunpacificmortgage.com for more information about what we do and what we offer.
California’s housing market continued to improve in January as buyers gained more confidence in purchasing a home and the affordability outlook improved slightly. Monthly sales may have been nominal for the past few months, but the market appears to be heading in the right direction. Home prices are expected to remain soft and less expensive homes will be easier to sell, especially in the San Francisco Bay Area according to the California Association of Realtors’ chief economist.
California home sales inched up in January for the second straight month as prices moderated somewhat. Sales of single-family homes were up 0.4% from December. The median time to sell a home in California was 33 days in January 2023, compared to the 12 days in 2022.
January’s statewide median home price was $751,330, down just 3% from December 2022. Given the huge appreciation homes acquired over the past couple of years, this decline could be viewed as negligible.
All in all, real estate through California remains a strong investment – for personal home buying, 2nd home buying, purchasing rental properties or even investing in Deeds of Trusts. Anyone needing fast financing or having difficult qualifying for home loans elsewhere, should check out Private Money or Hard Money loans. These fast and alternative mortgages from Sun Pacific Mortgage have assisted over 10,000 Borrowers over the past 35 years.
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Received another informative article from Val Krysov, long-time Real Estate Broker about the Bay Area’s real estate market. Summarizing his and other recent articles about San Francisco real estate, we can see declines in sales and values have been predicted. However, based on the latest statistics for sales of single-family and condo residences at the start of the year, there’s no obvious signs of deceleration. Val’s data supports the market still being strong:
San Francisco Single-Family residences:
Ave. sales price: $1,848,077
Days on market: 46
For sale at end of month: 218
Sold: 93
Menlo Park Single-Family residences:
Ave. sales price: $3,337,900
Days on market: 25
Sales price=asking price
Belmont Single-Family residences:
Ave. sales price: $1,870,000
Days on market: 41
Sales price=4% above asking
San Carlos Single-Family residences:
Ave. sales price: $2,242,000
Days on market: 39
Sales price=2% above asking
San Mateo Single-Family residences:
Ave. sales price: $1,743,769
Days on market: 30
Sales price=2% above asking
Burlingame Single-Family residences:
Ave. sales price: $2,296,875
Days on market: 34
Sales price= 2% above asking
This report does not bear out some of the more depressing forecasts touted by the predictions. Perhaps, because of the lack of inventory in these cities we are not seeing prices drop as precipitously as they might and Investors and homebuyers still see these areas as strong real estate investments.
If you have a homebuyer or borrower looking to buy or refinance in the San Francisco Bay Area, and they are in need a private mortgage because they do not qualify for conventional or traditional financing, or just need some FAST mortgage help, give us a call at 707-523-2099 or find us through our website at Sunpacificmortgage.com. We have helped thousands of borrowers in California for over three decades and we work with Brokers and Agents.
While the nation is concerned about the effects of a possible recession, it is good to remember that while history doesn’t always repeat itself, we can learn from the past. According to historical data, in most recessions, home values have appreciated and mortgage rates have declined. By most accounts, it is highly unlikely that we will see any kind of protracted decline in new residential structures that could set off a recession.
Looking at the single-family residential market in two random counties in California, i.e. Alameda and San Joaquin, it becomes apparent that California may be spared the worst of the decline:
Alameda County:
Median List Price: $900,000
Average days on Market: 94
Inventory: 587
Price increase: 3%
San Joaquin County:
Median List Price: $555,000
Average days on market: 89
Price increase: 3%
Other than the fact that homes are sitting on the market longer than last year, it does not appear that prices have plunged to extents they have in other places in the nation.
According to Taylor Marr, Deputy Chief Economist at Redfin,
“The housing market has begun to recover after hitting a low point in the second week of November. We’re not out of the woods yet, but homebuyers are coming off the sidelines. The number of people contacting Redfin agents to start the homebuying process has improved 13%.”
If you are ready to start investing again – in rentals or your own home – and cannot qualify for a conventional loan or are looking for a fast close, give Sun Pacific Mortgage a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com.
