The Lurie Group
San Francisco 2023 February Real Estate Report

San Francisco 2023 February Real Estate Report

  • Alexander Lurie
  • February 20, 2023

Early 2023 Data Suggests Buyers Are Beginning to Jump Back In

December is typically the month that sees the year's lowest level of deal-making activity - i.e. listings accepting offers (going into contract) - which leads to January usually posting the lowest monthly number of closed sales. (Sales typically close 3 to 6 weeks after going into contract.) In the 11-county, greater Bay Area, accepted-offer activity in December 2022 and closed sales volume in January 2023 generally hit their lowest monthly points in 14 to 15 years. (SF hit lower points in listings going into contract in January 2019 and, after the pandemic hit, in April 2020.)

Typically, after the long holiday slowdown, the market just begins to wake up in mid-January before accelerating into spring. That being said, inflation has dropped substantially since June and interest rates since November, home prices are well down from last spring, stock markets are up 8% (S&P) to 15% (Nasdaq) YTD as of 2/3/23 (albeit with continuing volatility), and despite escalating layoffs in high tech, early indications in 2023 point to rebounding buyer demand. Open house traffic has jumped, more buyers are requesting listing disclosure packages, and there have been increasing reports of multiple offers and (often unexpected) overbidding of asking price.

Based on this preliminary data (much of it still anecdotal*), it appears that buyer demand severely repressed by economic conditions in the 2nd half of 2022 has begun to bounce back.

A similar rebound began in mid-late summer 2022 for similar reasons - a significant drop in mortgage rates and a large rise in stock markets - which then quickly faded when positive economic developments went into reverse. Market activity then slowed further through the rest of 2022. There are currently considerable hopes for a more lasting economic recovery in 2023.

During the long high-tech and pandemic housing boom - which peaked in April/May 2022 - as each new year began, the classic dynamic was for buyers to jump back into the market much more

San Francisco real estate report discussing early 2023 buyer demand and market activity.San Francisco market report text discussing early 2023 conditions and the spring selling season.Chart of weekly 30-year mortgage rates from January 2022 to February 2023, with annotations about buyer demand.Line chart of S&P 500 and Nasdaq declines from January 2022 to February 2023, with market trend annotations.Chart of San Francisco house prices since 1990, peaking above $2 million in 2022 before declining.Chart of early 2023 median San Francisco house prices by bedroom count across selected realtor districts.Table of early 2023 median San Francisco house prices by bedroom count across selected realtor districts.Chart of San Francisco median house prices by bedroom count, with quarterly data from 2018 to 2022.Bar chart comparing San Francisco house sales by price range and bedroom count over six months.San Francisco luxury house sales by district and price range, with stacked bars and early 2023 market notes.San Francisco market demand chart showing monthly percentages of houses under contract by price segment, January 2022–January 2023.Chart of San Francisco two-bedroom condo prices, showing a January 2023 median of $1,215,000, down about 9% year over year.Chart of median San Francisco condo prices by bedroom count across selected districts, early 2023.Chart of San Francisco condo prices by bedroom count, showing Q4 2022 year-over-year declines across all three categories.San Francisco six-month home sales chart comparing bedroom counts across price ranges.Chart of San Francisco luxury condo, co-op and TIC sales by district and price segment, with Pacific Heights leading.San Francisco condo demand chart by price segment, showing monthly percentages of listings under contract through January 2023.Chart of San Francisco new listings from 2018 to 2023, showing seasonal peaks and the pandemic-era surge.Bar chart of San Francisco active and coming-soon listings, with monthly totals from February 2022 to February 2023.Chart of San Francisco active listings, January 2018–January 2023, with gold bars and pandemic-era supply annotations.San Francisco monthly listings accepting offers, 2019–2023, with seasonal peaks and a late-2022 decline.San Francisco monthly home sales chart, January 2019–January 2023, with seasonal trends and a January 2023 low.Chart of San Francisco $3 million-plus home sales from 2018 to 2023, with spring peaks in 2021 and 2022.Chart of Bay Area $5 million-plus home sales, falling to 30 in January 2023, down about 49% year over year.Chart of San Francisco expired or withdrawn listings, peaking at nearly 400 in December 2022.San Francisco active-listing price reductions chart, with monthly red bars, October peaks, and a pandemic marker.Chart of San Francisco home sales closing over list price, January 2018–January 2023.San Francisco chart comparing house and condo sale prices to original list prices, January 2019–January 2023.San Francisco sold-listing days-on-market chart comparing houses and condos from 2019 to January 2023.Market report notes on interpreting real estate statistics and Compass disclosure.

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Meet Alexander

Meet Alexander Lurie

Alexander Fromm Lurie is a highly accomplished San Francisco real estate professional and the leader of The Lurie Group, a top-performing team recognized among the top 1% of agents in the city. With over a decade of experience in the real estate industry and California DRE License #01952347, Alexander has built a reputation for delivering exceptional results, with hundreds of homes sold and over $1 billion in total sales volume. Born and raised in San Francisco, he brings deep local expertise, generational knowledge of the Bay Area, and a strong connection to the community into every client relationship. His approach goes beyond transactions—focusing on helping clients build meaningful connections to neighborhoods, schools, and local culture while navigating the buying or selling process with confidence.

Alexander’s background in management consulting and entrepreneurship further strengthens his strategic approach to real estate, allowing him to provide clients with a competitive edge in pricing, negotiation, and marketing. Known for his integrity, discretion, and client-first mindset, he continues to be a trusted advisor for buyers, sellers, and investors across San Francisco’s dynamic real estate market.

Alexander Lurie

Founder | Real Estate Advisor
LICENSE NUMBER
01952347
ADDRESS
629 Divisadero Ave, San Francisco, CA 94117

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