Home Prices in San Francisco Poised To Fall Further in 2024 – The San Francisco Standard

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For those active in San Francisco’s housing market, 2023 will broadly be remembered as the year of the deep freeze

Interest rates rose to the point that borrowing became nigh impossible for many buyers and sellers. As a result, the number of new home listings in the San Francisco Bay Area fell to its lowest point in nearly two decades, down 25% from the year prior, according to a market analysis by residential real estate firm Compass. 

Correspondingly, the number of sales also fell 24% from the year prior, registering numbers not seen since the Great Recession. 

Compass research revealed that the annual median sales prices for single-family homes in most San Francisco neighborhoods dropped back to pre-pandemic levels in 2023 after soaring to record highs during the two years prior. 

For reference, the median sales price for a single-family home in San Francisco came in at $1.57 million last year, paling in comparison to the $1.8 million in 2022 and the lowest number since 2017’s $1.42 million figure.

San Francisco Realtor District 1, which includes northwestern neighborhoods like the Richmond and Sea Cliff, saw among the steepest year-over-year declines, with average sales prices falling about $200,000 in 2023. 

In contrast, the only real estate district in San Francisco where prices actually rose included Pacific Heights, Cow Hollow and the Marina, where sales prices ticked up 2% compared with 2022. The average price of a single home in that area was more than $5 million. 

Condos, which make up most of the available housing stock in the city, have also seen median prices drop even further to 2017 levels in neighborhoods like SoMa, the Mission and the Dogpatch. However, areas like Hayes Valley, Alamo Square or Western Addition are holding relatively steady year over year. 

In 2021, a record number of luxury homes priced above $5 million sold in San Francisco, with nearly 200 changing hands. Fast-forward to today, that activity has slowed significantly, down 54% compared with 2021 and 23% from 2022. 

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