Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

San Francisco Housing Update -- Prices Didn't Crash in 2023

Name: San Francisco Housing Update -- Prices Didn't Crash in 2023
Uploaded: 2024-01-08T02:00:09+00:00
Duration: 56 s
Channel: Austin Klar
Description: In this video, Austin Klar analyzes the San Francisco luxury housing market for 2023, noting a significant slowdown in transaction volume compared to…

8 Jan 2024 · 1 min

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In this video, Austin Klar analyzes the San Francisco luxury housing market for 2023, noting a significant slowdown in transaction volume compared to 2022 but an absence of a major price crash. Sales of properties over $5 million fell from 104 in 2022 to 77 in 2023 (a 26% drop). Despite fewer sales, the average sale price rose from $7.5 million to $8.7 million, while price per square foot declined about 3.4% to roughly $1,588/ft². Klar attributes the 2022 peak to pandemic‑driven demand and highlights the impact of Federal Reserve rate hikes. He points out a 25% increase in luxury transactions in the back half of 2023 versus the same period in 2022, suggesting a rebound. Looking ahead, he predicts that easing interest rates in 2024 will spur more activity in the luxury segment. The video ends with a call to follow for more Bay Area real‑estate insights.

Chapters

The luxury housing market in San Francisco definitely slowed down in 2023 compared to 2022, but the steep drop in the number of transactions actually didn't result in a big price crash, and signs point to a more robust 2024 for luxury housing. If you look at sales over $5 million, there were 104 in 2022 compared to just 77 in 2023, which is about a 26% drop. Interestingly though, the average price in 2023 was $8.7 million compared to just $7.5 million in 2022. Even though the sale prices were up, the prices per foot were down about 3.4% over that same time period to about $1,588 a foot down 16,44 a foot. But it's really important to remember that the first half of 2022 was the peak of the pandemic housing market before the Fed really got into gear with rate hikes. And I anticipate that as interest rates continue to come down in 2024, you see an increase in the number of transactions. In fact, in the back half of 2023 compared to the back half of 2022, there was actually a 25% increase in the number of luxury transactions over $5 million. Follow me for more Bay Area real estate.