San Francisco is a busy city and a popular tourist destination.
Known for its iconic landmarks, tech-driven economy, and beautiful views, it’s also a city with a real estate market that reflects its ever-growing population and high demand for housing. With so many factors influencing the market, it’s no surprise that property prices fluctuate throughout the year.
Over the years, San Francisco has seen house prices steadily rise, and as more people move to the area for work or lifestyle reasons, the need to understand the timing of the real estate market becomes more important than ever. If you’re trying to get a good deal, it’s important to understand when the market is most active with new listings and sales of homes.
Let’s explore what recent data shows about the seasonal changes in San Francisco’s real estate market!
Spring: The Seller’s Mark
Spring is the most active season in San Francisco’s real estate market. From March through May, the city witness a surge in home sales and listings. From May 2019, there were 731 new listings, 10% of that year’s overall listing, fast forward to May 2022, new listings found 829, 10 percent of that years total.
This trend shows consistency and May tends to be a high point in the year. Below are several reasons why spring is the most active season throughout the year:
- Increased Activity: The warmer weather encourages more people to attend and property showing. Spring’s pleasant condition make exploring homes more appealing compare in the colder months
- Family Timing: Many families prefer to move in the area during Spring, to minimize disruptions of work and especially their children’s school schedules. As a reset, they start home searching in the spring.
- Curb Appeal: Home looks best in the spring. For this reason, flowers in bloom and lush green landscapes enhance property’s attractiveness oftenly leads to higher buyer interest and better sales prices.
Summer: Second Surge of listings
The summer months (June to August) maintain momentum, with a high number of listings during this time of year. Over the past decade, the month of September has consistently been the month for new listings. In 2014, there were 831 new listings, 1,103 new listings in 2019, and 937 in the year 2023.
Data from Helm Real Estate shows that median prices stabilize during summer of $1.5 million since July 2022. The month of September contributions of year’s total listings range from 12% – 16%.
Buyer activity can dip in the months of July and August due to vacations. This creates an opportunity for buyers to make purchases without that much competition.
Fall: Buyer’s Window
This time, the real estate market starts to gradually slow down in the fall months, from September to November. However, this season can offer advantages, especially for buyers.
Sellers who did not manage to close deals from the previous season may lower their prices just to make a sale before the year ends. This is obvious: if it doesn’t get sold, it will be much harder to sell during the next season—winter.
Winter: The Slow Season
Winter (December to February) is the slowest period for San Francisco’s real estate market. The reason for this is obvious: the cold weather. The number of new listings drops significantly, accounting for just 4% of annual listings.
For example, in December 2023, there were only 137 new listings, a significant drop compared to September’s 937. In early 2024, prices dipped to around $1.35 million, a 6-8% decrease from the spring highs of 2023. Homes in winter also have longer selling times, up to two months.
Tips for Buyers and Sellers
For buyers, the best time to buy is in winter when competition is lower. With fewer people searching for properties during this time, you’re likely to encounter less bidding wars, which can lead to a better price or a more favorable deal. However, there are some challenges to consider. The cold weather can affect site viewings, especially if you’re touring homes with exterior features like gardens or outdoor living spaces. Additionally, homes may not showcase their full potential during winter, as curb appeal is often less striking with fewer flowers, bare trees, and potential weather-related maintenance issues.
For sellers, listing your home in early spring or summer can maximize your chance of quickly selling at a higher price. This is especially true in San Francisco, where a competitive market can push prices higher in spring and summer. Thus, if you’re planning to sell, preparing your home well ahead of time can make all the difference in securing the best price. One more thing is to make sure your property is in top condition to take advantage of warm weather and curb appeal. Both buyers and sellers can benefit from understanding these seasonal dynamics, allowing them to plan their strategy accordingly.
Ready to Make Your Move?
Thinking of buying or selling in San Francisco? Timing is everything. Reach out today and let us help you navigate the market and find the best opportunities based on the season!
https://helmrealestate.com/blog/san-francisco-real-estate-market-update-march-2024
