In the United States, mortgage rates are two percentage points higher than a year ago and mortgage applications are down by 12%. The Mortgage Bank Association predicts fewer home sales in 2022 than 2021. What does that mean for the Bay Area? Like everywhere, we are living in fear of a recession, and the reality of inflation.

Fewer San Francisco Properties for Sale

In the month of April, only 542 new residential listings hit the market, 30% fewer than April 2021; and 769 properties sold. The lower inventory trend started in January, so it is no wonder the median sale price at $1,600,000 is 12% higher than the same period last year. The average price per square foot in April 2022 was $1,153, which is 7% higher than April 2021.

City properties sold faster — at an average of 48 days on the market, which is 13% lower than the 55 days it took on average in April 2021. Demand is still high, but the beat seems to have slowed from the musical chairs we experienced in 2021.

Inflation hits Home

A volatile stock market, rising interest rates and high inflation are combining to impact the number of transactions. When financial markets are unstable, sellers tend to hold on to their property investments, which can mean less inventory. High inflation does not help to lower housing costs and demand for housing continues to outpace availability so far.

What will happen to home prices in the next few months? No one knows for sure but if you find a property you like, grab it, the best homes will continue to be in demand. If you want to sell, we can help you position your property for success.

As you can see from the chart, 25% of San Francisco properties are sold off market. Please stay connected with us so that we can help you discover all possibilities.
Sincerely,
Anne Laury
415-336-7077
The Laury Team

Changing Market – Monthly Newsletter – May 2022

Inflation hits Home