San Francisco Real Estate
November 2023 Report
Rising Interest Rates Continued to Impact Supply & Demand in October,
But Early November Brings Big Shift in Economic Indicators
The heart of the autumn selling season was dominated by global conflict, falling stock markets –
and interest rates jumping to their highest point in 23 years, further discouraging buyers who
require financing, and prospective sellers reluctant to abandon their current loan terms. Then on
November 1st, the October jobs report came out, the Fed extended their pause on raising its
benchmark rate, and the Treasury Department issued revised guidance pertaining to upcoming
bond sales – and by November 3rd, stock markets had logged their best week of the year, and
interest rates had seen a near-record decline. The housing market typically begins its big, holiday
slowdown in mid-November, with listing and sales activity declining to annual lows. Considering
the volatility that has characterized economic and political conditions, it’s too early to speculate on
how these shifts will play out in the coming days, weeks and months. Ideally, rates will continue to
normalize and consumer confidence to recover into the new year, with significant improvements to
both housing affordability and the equation for homeowners contemplating a sale.
Even if the expected holiday slowdown occurs, sellers of appealing, well-prepared and well-priced
homes may still see a quick sale with multiple offers: There are still qualified buyers actively
looking to purchase (with financing or all cash). For buyers, mid-winter usually offers reduced
competition for listings, and an enhanced ability to aggressively negotiate prices on unsold
properties: It can be an excellent time to buy for those who stay in the game.
This report will review trends in home prices, new and active listings, speed of sale, overbidding,
listings going into contract, and sales volumes in both the general market and the luxury segment.
We have also updated our Bay Area home price tables and maps with detailed data on current
values and market dynamics in the cities, towns and other submarkets within the region.
