San Francisco Market Update

San Francisco Market Update

January 2023

Clients, friends, and colleagues:

As we enter the new year and contemplate what the market has in store for 2023, let's review the major economic indicators of 2022, dive into year-over-year comparisons, and look at longer-term trends to keep important perspective.

Before we dive into the market data, I want to provide some quick color on the big headlines about tech layoffs.  Let's take two giants: Salesforce and Meta.  Salesforce is cutting 10% and Meta cut 13% of their workforce.  As substantial as these cuts are, these headlines are a lesson in the importance of context:

Data sourced from statista.com

Salesforce:
49,000 employees in January 2020
80,000 employees in October 2022
Cuts 8,000 jobs
Still a 47% increase in employees since January 2020

Meta:
45,000 employees in January 2020
87,000 employees in September 2022
Cuts 11,000 jobs
Still a 69% increase from January 2020

As always, feel free to reach out to me with any specific questions.  The San Francisco market has been showing strong signs to start the year, but it remains a great time to negotiate as a buyer in several sectors of the market.  I have a short-list of wonderful buys depending on your target criteria.

Sincerely,
Ron

Just Sold

Four seasons / San Francisco

765 Market Street, Unit 22E

2 BD   3 BA   1456 SF
Asking $2,100,000 / SOLD $1,800,000
Buyer Represented (Negotiated $300K discount!)

ronsellsthecity.com

Ron Salter

DRE #: 01989381
REALTOR®
M: 415.717.8752
ron.salter@compass.com
ronsellsthecity.com

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.

Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.

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