An elegant white clock featuring 'DANIELLE LAZIER REAL ESTATE LOGO' on a sleek black background.Vivre Real Estate logo

San Francisco Real Estate Market Update: Fall 2023

October 10, 2023

This fall 2023, our team of San Francisco real estate agents has observed significant shifts in the local property market—both on a wide economic scale, and down “in the trenches” working with SF home buyers and sellers. From soaring interest rates to a volatile stock market, we're here to break down what these changes mean for you.

Current Real Estate Trends in San Francisco

The San Francisco real estate market, which is typically brisk this time of year, has presented new challenges this fall. Mortgage interest rates have continued their upward trajectory since October kicked off, and the stock market has been nothing short of a rollercoaster.

An added layer of complexity comes from the market’s sensitivity to expected Federal Reserve actions, often overshadowing their response to actual economic indicators. (Good jobs report? Batten down the hatches for a rate hike!) These fluctuations have led to an economic landscape that's a bit hard to predict right now.

Navigating Home Buying and Selling in San Francisco Q4 2023

If you're considering a change in living arrangements—whether buying a home in San Francisco, or selling a home in San Francisco, or both—these fluctuating interest rates could mean higher mortgage payments for your next property. But there is some upside in the market; the number of new listings in San Francisco skyrocketed in September, reaching a year-to-date high for 2023. This surge could result in a sizable increase in Q4 home sales, particularly for houses, which are currently more in demand than condos.

When it comes to selling properties, well-priced homes in desirable locations are still drawing healthy attention. We've used our expertise as top San Francisco listing agents to secure sales at prices that not only meet but exceed our sellers' expectations. Forged and fine-tuned over the last two decades—and all their ups and downs—our unique pricing and preparation strategies at Danielle Lazier / Vivre Real Estate are particularly valuable to San Francisco home sellers in softer markets.

What’s on the Horizon: SF Real Estate Forecast for 2024

Looking ahead, the California Association of Realtors® has provided a decently optimistic forecast for 2024. Their outlook includes a 23% increase in existing single-family home sales and a 6.2% rise in the median home price throughout the state. However, the housing supply is projected to remain below normal, heightening competition, especially with projected 6% mortgage rates by the CAR. Given the higher price tag of San Francisco real estate, and the heavy impact of interest rates on tech stocks and local buyers’ budgets, these rates remain a key factor in our market.

San Francisco Luxury Condos: A Buyer's Paradise?

While houses are currently more in-demand than condos, there’s another layer of complexity within the luxury condo market, which has been experiencing a deeper cooling trend. According to a recent article in the San Francisco Chronicle, luxury condos like One Steuart Lane are seeing a significant drop in sales. Over half of the 120 condos at One Steuart Lane remain vacant, and this trend is echoed in other luxury condo buildings across the city.

The slowdown is attributed to higher interest rates and the challenges San Francisco is facing post-pandemic. These factors have led both foreign and local buyers to pause their investments. However, this cooling trend could be an opportunity for savvy buyers. With waning demand and an oversupply of luxury condos, the market is shifting in favor of buyers, making it an ideal time to invest in a luxury condo.

The Savvy Approach to Luxury Real Estate

In the San Francisco luxury real estate market, clients are savvy and focused on long-term investments. This focus is particularly evident when we look at the market's division into two groups: those dependent on interest rates and those who aren't. The latter group is especially active today, seizing opportunities to negotiate and make strategic moves amid market uncertainty.

Diversification continues to be a key strategy. Many of our San Francisco Bay Area clients are wisely expanding their real estate holdings, especially when there's a drop in property prices. This approach is supported by the current market stability, which is partly due to a decrease in listing inventory. In the case of luxury condos, which saw a burst of new supply around 2017-2019, buyers may find that they have an upper hand. For other properties, especially single-family homes in San Francisco, scarcity is keeping prices and competition afloat even as demand is challenged by factors like mortgage rates and stock volatility.

Let's Make Your Real Estate Goals a Reality

Understanding the San Francisco real estate market can be daunting, especially with its current volatility. Whether you're ready to make a move or just contemplating future plans, we're always happy to connect for a free, no-pressure consultation to guide you through your options.

That wraps up our comprehensive guide to the fall 2023 San Francisco real estate market! When you're ready to discuss your San Francisco real estate goals, we're just a phone call or an email away. Click here to contact us.

Also, sign up for our email newsletter to get all our latest updates directly in your inbox! We respect your privacy and never share your information with third parties. Just the good stuff—no spam or games. Sign up below and get our new insights, local faves, curated articles and upcoming events delivered.

Get our latest in your inbox 💌

* indicates required
Yelp logo
296 reviews
View All
Zillow logo
176 reviews
View All
Danielle Elazier Realtor on Google My Business- image of Google my business logo
117 reviews
View All

Danielle lazier real estate team

We care deeply about our clients and our commitment to exemplary results. Working with us should be a good fit for you. If you feel our team is the right fit for you and you’d like to talk with Danielle to make sure, contact us today for your complimentary initial consultation.
Contact Me

Do You Need Another Real Estate Newsletter?

Probably not. Yet, in our biased opinion, you should definitely sign up for our twice-monthly email for market insights, webinar invites, local news, gorgeous homes, and more. We never share or sell your information. And, when you’re ready to work with us, please email or call to discuss your plans. We’d love to help!

Danielle Elazier botanical illustration - 3 different California poppy flower branches. Black and white with line art
View Full Street Address SAN FRANCISCO, CA 94114 (415) 528-7355 ©2023 VIVRE REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES, OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS, AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT, OR ZONING EXPERT. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS. WE COOPERATE WITH THEM FULLY. EQUAL HOUSING OPPORTUNITY. ALL INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED AND SHOULD BE INDEPENDENTLY REVIEWED AND VERIFIED.
enteruserclockcross