What to Expect for the San Francisco Bay Area Real Estate Market in 2023

Jess Williams  |  February 8, 2023

What to Expect for the San Francisco Bay Area Real Estate Market in 2023

The San Francisco Bay Area is a dynamic and vibrant area with real estate values that have seen remarkable growth over the last several years. But what can you expect for real estate in 2023? Join us as we take an inside look at what the San Francisco Bay Area Real Estate market may look like this year! We will discuss future forecasts and explore new opportunities available to homebuyers and sellers alike – all while helping prepare you for whatever lies ahead!

About the San Francisco Bay Area real estate market

The San Francisco Bay Area is one of the most desirable real estate markets in the country. From luxury condos with sweeping views of the bay to mid-century modern homes in more suburban neighborhoods, there’s something for everyone in this hot market. This has led to a sharp rise in prices due to high demand, making it important to weigh all options carefully when buying or renting a property here.

Forecasting what the market may look like in 2023

Looking at San Rafael in Marin County as an example:

Median listing prices have risen from the lows in the $500-750,000s seen in the summer and fall of 2021. There was a consistent rise toward the $1.3 million range through September 2022, with a minor drop toward the $1.1 million range as of December 2022. Looking specifically at San Rafael townhomes and Marin County condos for sale, the median list price has consistently stayed between $500,000 to $650,000 for the past five years, with occasional spikes and dips outside that range.

The number of homes for sale over the past two years has not exceeded 180. The dip in median listing price in the summer and fall of 2021 may be attributed to under 20 homes available per month during that time frame.

Homes traditionally stay on the market for a median of under 100 days, marked as the day of listing to the day of going under contract.

Looking at Oakland in East Bay County as an example:

Median listing prices for Oakland have been on an overall upward trend over the last five years, even though the month-to-month comparison is volatile. By looking year over year for this area of East Bay real estate, however, you can see the growth over time. For example, let's look at September over time. In 2018, the median was $649,900. The following year, it was $699,000. It did drop in 2020 to $685,000, but that could be attributed to the first year of the pandemic. In 2021, it was $764,450, the highest it reached over the past five years, and in 2022, it was $749,000, a small drop yet still $100,000 higher than it was in 2018.

The number of homes for sale usually stayed below 500 until spring 2022, when it climbed to 647 before peaking at 810 in July 2022. As such, home buyers have routinely had plenty of homes to tour, though the market has favored sellers.

The median days on the market are routinely below 100, marked as a day of listing to the day of going under contract.

Strategies for homebuyers to maximize potential gains

Aside from basic enjoyment of the new property during your time living in it, the potential for gains when buying a home can be tremendous, and with the right strategies, homebuyers can maximize those gains. One important strategy is doing research on the local real estate market. This includes researching current trends in pricing, as well as any potential areas of growth that may increase the value of a property over time. You can research recent sales yourself or consult with your buyer’s agent for a more detailed picture of what to expect for the neighborhood you are considering.

Another beneficial strategy is to understand all costs associated with the purchase. Homebuying involves more than just purchasing the property itself; it also involves upkeep and maintenance. Depending on how long you plan to retain the property, you need to plan for the replacement and maintenance of house features within that time frame, like appliances, roofing, windows, HVAC, etc. Be sure to also evaluate the state of the kitchen and bathrooms to determine if a major renovation will be necessary before you sell down the road. If so, you’ll want to factor those renovations into your budget as well.

It is also important to be aware of financing options available to you before making a decision on a home purchase. Many lenders offer special programs such as low-interest or no-down-payment loans that can significantly reduce upfront costs while still providing access to a desirable property.

Finally, it is important to hire a reputable buyer's agent to help navigate the process of buying a new home. A buyer's agent can provide assistance in negotiating with the seller, researching properties and neighborhoods, finding financing options, and managing paperwork.

By taking the time to do research and understand available financing options before making a purchase, homebuyers can greatly improve their chances of making a sound financial decision that will lead to maximum potential gains from their new property in the future, all while securing the best property to meet their current needs!

Opportunities for home sellers to capitalize on current trends

To give yourself the best chance of success to capitalize on current trends in home sales, there are a few key things you should do.

First, make sure to price your home correctly compared to other properties in the area that have recently sold – this will ensure potential buyers are more likely to view your property as a good investment. Additionally, make sure to keep up with maintenance and repair any areas of the property that may require attention before listing your home.

Secondly, hire a great listing agent who is experienced in selling homes in your specific area and can help you navigate the complexities of the market. A seasoned listing agent can be invaluable when it comes to marketing your home and negotiating with potential buyers.

Thirdly, stage your property so that it looks as attractive as possible to prospective buyers. This can range from simply decluttering and cleaning your home to hiring a professional stager and making renovations.

Finally, employ effective marketing techniques to draw attention to your property and make it stand out from the competition. This could include creating a website for your home, showcasing it on social media platforms, and making sure to get the word out in your local community.

By following these tips, you can give yourself an advantage when selling your home in today's competitive market. With diligent research and hard work, you should be able to find success and get the most value for your home.

Advice for navigating the San Francisco Bay Area real estate market in 2023

Real estate markets can be tricky to navigate, and the San Francisco Bay Area is no exception. As with any market, it's important to determine if now is the right time for you to buy or sell a home. It can be beneficial to pay attention to trends in the market and ask for advice from professionals before making any decisions.

When buying a home, be sure to consider factors like pricing, location, and desirability. Although the market continues to favor sellers, prices still fluctuate month to month. Thus, it's important to research available homes in order to get an idea of what your options look like before deciding if now is the best time for you to make a purchase. Additionally, doing things like getting pre-approved for a loan or even having cash on hand can help speed up the process when searching for a home in this market.

On the flip side, if you're looking at selling your home in the San Francisco Bay Area, then there are certain steps that must be taken first, too. For starters, it would be beneficial to do some research into recent sales of similar properties nearby so that you can price your home competitively relative to these properties. Furthermore, consider properly staging rooms and taking quality photographs of the property, as this could potentially increase interest among buyers who view your listing online or come for a viewing in person. Additionally, hire an experienced real estate agent who knows how best to market your property and attract potential buyers who will offer top dollar for it when selling in this market.

Overall, understanding what current conditions are like in the San Francisco Bay Area real estate market is key when determining whether or not it's right for you to personally buy or sell anytime soon. Researching recent sales data and talking with professionals are essential steps that should not be overlooked throughout this process so that you make an informed decision that best fits your needs in terms of timing and budgeting when navigating this particular market. If you are interested in buying or selling East Bay real estate in 2023, reach out to experienced agent Jess Williams to discuss your goals. Jess is a trusted real estate advisor and looks forward to helping you navigate this year’s market.

Work With Jess

I take pride in always providing exceptional service with diligent attention to detail to build authentic relationships with my clients. If you are looking to partner with a San Francisco real estate agent who will always put your needs first, let's see how we can work together!