Pacific Heights Real Estate: A Deep Dive into the 2023 Market Trends
The Pacific Heights neighborhood in San Francisco is known for its stunning views, historic mansions, and upscale real estate. In this blog post, we'll analyze the key metrics and trends in the Pacific Heights real estate market as of the month ending August 2023, focusing on the year-to-date (YTD) trends vs 2022. We'll also provide some key insights and potential implications.
Key Metrics and Trends
Let's start by examining the key metrics and their percentage changes for both single-family homes and condos/townhouses/co-ops in Pacific Heights.
Single Family Homes
| Metric | 2022 YTD | 2023 YTD | Percent Change |
|---|---|---|---|
| New Listings | 54 | 54 | 0.0% |
| Pending Sales | 30 | 23 | -23.3% |
| Sold Listings | 30 | 24 | -20.0% |
| Median Sales Price | $5,750,000 | $5,800,000 | +0.9% |
| Average Sales Price | $6,376,033 | $6,815,788 | +6.9% |
| Days on Market | 29 | 59 | +103.4% |
| % of Properties Sold Over List | 63.3% | 20.8% | -67.1% |
| Percent of List Price Received | 103.9% | 97.1% | -6.5% |
Condos/Townhouses/Co-ops
| Metric | 2022 YTD | 2023 YTD | Percent Change |
|---|---|---|---|
| New Listings | 206 | 128 | -37.9% |
| Pending Sales | 137 | 93 | -32.1% |
| Sold Listings | 141 | 90 | -36.2% |
| Median Sales Price | $1,510,000 | $1,500,000 | -0.7% |
| Average Sales Price | $1,864,328 | $1,999,411 | +7.2% |
| Days on Market | 40 | 46 | +15.0% |
| % of Properties Sold Over List | 52.5% | 40.0% | -23.8% |
| Percent of List Price Received | 102.9% | 100.0% | -2.8% |
Key Insights and Implications
- Slowing market activity: The number of new listings, pending sales, and sold listings for both single-family homes and condos/townhouses/co-ops have either remained stagnant or decreased in 2023 compared to 2022. This indicates a slowing market, with fewer properties being listed and sold contributing to low sales volume.
- Longer time on the market: The days on market for both property types have increased, with single-family homes experiencing a significant jump of 103.4%. This suggests that properties are taking longer to sell, which is a result of less qualified buyers in the market, buyers being more selective, and a general slowdown in the amount of competition amongst buyers.
- Fewer properties selling over list price: The percentage of properties selling over their list price has decreased for both single-family homes and condos/townhouses/co-ops. This indicates that bidding wars are less common and buyers may have more negotiating power in the current market.
- Stable or increasing prices: Despite the slowing market activity, the median and average sales prices for single-family homes have increased slightly, while the median sales price for condos/townhouses/co-ops has remained relatively stable. This is a sign that demand for properties in Pacific Heights remains in line with available inventory, even as the market slows down.
Final Thoughts
The Pacific Heights real estate market in 2023 has slowed, with fewer properties being listed and sold, and longer days on the market. Prices in the aggregate have remained stable or increased slightly, indicating that demand for properties in this prestigious neighborhood remains healthy. Aggregate prices (median or average) can paint a different picture than what is experienced on an individual house level, so it is essential to understand the strength and weaknesses of each individual property.
Buyers may find themselves with more negotiating power in the current environment, unless they are in a competition. Sellers should be prepared for a potentially longer sales process and more contingencies written into offers versus years past.
As always, it's essential to work with an experienced real estate professional who can help navigate the unique dynamics of the Pacific Heights market. Contact the experts at Artemis for more information.
NFA / DYOR - Not Financial Advice / Do Your Own Research
Information provided herein is for informational purposes only and is subject to change without notice. This publication does not constitute, either explicitly or implicitly, any services or financial advice by Artemis Real Estate. Information provided is not guaranteed, and Artemis does not guarantee the accuracy of any information obtained from a third party.
