March 2023 Market Update

March 2023 Market Update

  • San Francisco Association of REALTORS®
  • 04/12/23

Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring, increasing for the third consecutive month, according to NAR.

New Listings were down 29.5% for single-family homes and 41.6% for Condo/TIC/Coop properties. Pending Sales decreased 36.9% for single-family homes and 36.4% for Condo/TIC/Coop properties.

The Median Sales Price was down 15.1% to $1,697,500 for single-family homes and 10.5% to $1,080,000 for Condo/TIC/Coop properties. Months' Supply of Inventory increased 30.8% for single-family units and 6.9% for Condo/TIC/Coop units.

Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there was just 2.6 months’ supply of existing homes at the beginning of March, far below the 4–6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.