Clients, Colleagues and Friends,

The Fall market has been interesting to say the least: buyers and sellers are navigating skyrocketing interest rates, a roller coaster of a stock market, and persistent inflation. September-October brought the highest number of listings on the market thus far this year, which hopefully should translate to higher sales volume!

House prices are down about 6.5% year over year, and condo prices are down 4% from Q3 2022, and both were way down from their peak in Q2 2022. In terms of overall appreciation, on average, single-family homes are back to 2017 price levels and condos to 2015 levels. However, that really varies by location, condition, and intangibles such as views. In addition to high interest rates, the ‘depreciation’ of home values can be attributed to rising construction costs. Previously, homes in need of renovation were seen as good opportunities to add value, but as construction costs continue to creep higher and higher, buyers are factoring those astronomical upgrade costs into a potential purchase price as the profit margins from construction are slim and depend on market appreciation.

Sellers are coming around to the realities of today’s market with price reductions seen across the city. It is looking more and more as though waiting until next spring will not necessarily yield a different, or better market, and that we are in for a couple of years of high rates, high construction costs, and a wobbly economy.

We have over 82 properties for sale right now in the $5-$10M range, an astounding figure (30 of these are co-ops and condos, and the rest are single-family homes). In the past three months, only 15 properties have sold in that range. That is a VERY slow segment of the market! For homes priced between $5-$7.5M, the days on market average has climbed to 65 days. Properties in the $1M-$3M range remain fairly brisk with an average of 31 days on the market, although that is a far cry from the frenzied days when 7-14 days was considered normal.

However, it’s not all doom and gloom. There are deals to be had right now – beautiful homes at incredible prices – and rates will not stay high forever. We have helped some buyers recently secure properties at fantastic value – with one in contract which appraised $200k OVER the purchase price (a rare occurrence)!

We are launching some exciting properties this month: an elegant condominium with full Golden Gate Bridge views (55 Child #2, asking $2.595M) a classic Edwardian condominium in Presidio Heights (2919 Pacific, asking $1.575M), a wonderful single-family home in Forest Hills with a sprawling garden (343 Castenada, asking $3.6M), and a chic downtown pad at 181 Fremont (Unit 57C, asking $3.2M). We have also just reduced the price on two of our single-family home listings with the hopes that someone will snap up these really special residences: 2660 Green and 2742 Buchanan!

Please click here for the full San Francisco market report: Flipbook

Best,

Team Hatvany

Nina, Natalie, Vanessa & Paul