San Francisco Real Estate Market April 2023 Report

The Market Continues to Recover, But with Many Dynamics at Play

Buyer demand continued to rebound from the depths of the mid-winter slowdown: The number
and percentage of listings going into contract, and overbidding percentages continued to climb,
and days-on-market to drop as the spring selling season gained traction. Buyers generally
shrugged off the local banking crisis, the main effect of which, so far, has been a significant drop in
interest rates in the 4 weeks after SVB collapsed and First Republic first came under pressure.

But though conditions have improved considerably, the market remains significantly weaker on a
year-over-year basis, and across the Bay Area, median home sales prices have declined. However,
it’s worth remembering that the market in Q1 2022 was severely overheated, and approaching the
peak of a historic, 10-year boom. This will distort many year-over-year comparisons.

The number of new listings coming on market continues to be extremely low, as many potential
sellers hold off from listing their homes due to the doubling of interest rates since early 2022: This
constitutes a huge factor in market dynamics and is undoubtedly holding back sales activity.

Across the Bay Area, year-over-year sales declines in the highest price segments have outpaced
drops for less expensive homes, and their demand-to-supply ratio – the number of sales compared
to the number of listings for sale – is much weaker. Luxury home sales have been hit harder since
the market correction began in mid-2022, though they too have been rebounding in 2023.

April, May & June sales volumes are commonly among the highest of the year, and this is
especially true for luxury home sales.

The Market Continues to Recover, But with Many Dynamics at Play

Report created in good faith with data from sources deemed reliable, but may contain errors
and subject to revision. All numbers approximate, and may change with late-reported activity.

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of
unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad,
comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in
smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported
data. Different analytics programs sometimes define statistics – such as “active listings,” “days on market,” and “months supply
of inventory” – differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and
sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings
or sales are reported to MLS and these won’t be reflected in the data. “Homes” signifies real-property, single-household
housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market.
City/town names refer specifically to the named cities and towns, unless otherwise delineated. Multi-county metro areas will
be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be
considered approximate.

Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities,
views, lot size, quality of outdoor space, “bonus” rooms, additional parking, quality of location within the neighborhood, and
so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.

Median Sales Price is that price at which half the properties sold for more and half for less. It may be affected by seasonality,
“unusual” events, or changes in inventory and buying trends, as well as by changes in fair market value. The median sales price
for an area will often conceal an enormous variety of sales prices in the underlying individual sales.

Dollar per Square Foot is based upon the home’s interior living space and does not include garages, unfinished attics and
basements, rooms built without permit, patios, decks or yards (though all those can add value to a home). These figures are
usually derived from appraisals or tax records, but are sometimes unreliable (especially for older homes) or unreported
altogether. The calculation can only be made on those home sales that reported square footage.

Compass is a real estate broker licensed by the State of California, DRE 01527235. Equal Housing Opportunity. This report has been
prepared solely for information purposes. The information herein is based on or derived from information generally available to the
public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or
completeness of the information. Compass disclaims any and all liability relating to this report, including without limitation any express or
implied representations or warranties for statements contained in, and omissions from, the report. Nothing contained herein is intended
to be or should be read as any regulatory, legal, tax, accounting or other advice and Compass does not provide such advice. All
opinions are subject to change without notice. Compass makes no representation regarding the accuracy of any statements regarding
any references to the laws, statutes or regulations of any state are those of the author(s). Past performance is no guarantee of future
results.