San Francisco Real Estate
August 2022 Report
Across the Bay Area, markets have continued to slow and cool. As illustrated in this report, dramatic
changes in demand, inventory, overbidding, price reductions, and year-over-year appreciation rates have
usually occurred. Buying and selling continues: Over 5200 home sales were reported to MLS from Napa
County to Monterey in July 2022 – many of them selling quickly for over asking price – but that number is
down 38% from last year. Median home price appreciation rates in the Bay Area have seen steep declines
from those in 2021/early 2022 – and in June/July, SF median house prices were down year over year.
Changes vary in degree by location and market segment, but the direction of the shifts is near universal.
This report will review year-over-year changes in prices, and in supply and demand, reflecting the
significant adjustments from the heated (often overheated) conditions recently the norm, but also look
at longer-term trends to provide greater historical context. There is also a comparison of home prices
within the local market, as well as across the Bay Area.
As of early August, the average, weekly mortgage rate for a 30-year fixed rate loan fell below 5% for the
first time since April, and stock markets have seen large rebounds since early July – but these and other
indicators have been subject to sudden and often dramatic volatility, and their future directions can’t be
taken for granted. Within this report is a link to a review of many of the macroeconomic factors at play.
According to some agents, buyer interest has begun to rekindle with the decline in competition, increase
in inventory, and economic changes mentioned above, but if this is part of a broader recovery in demand,
it has not yet shown up in the statistics – which are lagging indicators of what’s occurring on the ground
right now. Monthly data can be volatile, fluctuating according to a wide variety of factors, including
market seasonality. Longer-term trends are more meaningful than short-term fluctuations.
Mid-late summer is usually a much slower period compared to the spring selling season. Autumn
typically sees a very substantial spike in new listings and sales prior to the big mid-winter slowdown.