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San Francisco saw the fourth-highest decrease in housing transactions in markets across the U.S. with a 29.1% drop in sales between June 2021 and June 2022. The city that took the top of the list? Miami, Florida with a 35% drop in transactions. Fellow Californians in San Diego saw a 33.1% decrease over the year.
Home sales going down and active housing inventory going up in San Francisco is a good thing for potential homebuyers in the area, according to Tim Yee, President and Broker of RE/MAX Gold Bay Area. “Sellers are getting more realistic, and there are fewer buyers in the market right now. There’s less foreign investment. The pricing is better than it was a year ago at this time,” Yee told KRON4.
The prices of homes in San Francisco have gone up 12.6 percent over the past year, and the median home price is nearly $1.3 million. For many people this means buying a home in the area is not an option. However, buyers who are able to pay the big purchase prices may see this as an opportunity.
Yee says this is a great time for potential homebuyers to “get creative” with their purchase choices, because there are fewer all-cash offers on the market. However, some buyers who may be waiting for a big dip in the market to get into their homes may be waiting in vain, says Yee.
“I don’t see any massive bubble bursting…I don’t think it’s a great time for buyers to wait,” Yee said. Though interest rates are higher than they were months ago, they are still in a “reasonable” bracket, and could increase over time.
Layoffs at big technology companies in the Bay Area may be impacting the market, but not by much according to Yee, “remember that a lot of these folks had big bonuses and stock options, so there’s still a lot of equity in the tech market.” Yee says that because tech companies are still investing in commercial real estate spaces in the Bay area it will continue to see growth.
Yee is confident in the sustainability of the Bay Area housing market, and he believes part of that is due to the area’s influence in the tech world.” After 2008 this market came back faster than any other in the country. I predict that we will always be the first to recover,” Yee said.