The Cotter Group’s Thoughts On The Current Market

The Data

As we look back on the first quarter, it’s evident that the real estate market has seen a significant decline in most key metrics compared to the unprecedented demand spike that was experienced in late 2020 and early 2021.

Median Sales Price

The first quarter recorded an 18.2 percent reduced median sales price for single-family homes and an 8.5 percent decrease for condominiums compared to the same time last year.

The Pulse

Despite these figures, the current real estate market sentiment is vastly different from what it was just a couple of months ago. Many buyers are taking advantage of the current landscape and securing deals that haven’t been seen in years.

The market is currently feeling very nuanced & can vary dramatically neighborhood by neighborhood & also by property type. Noe Valley & the northern neighborhoods like Pacific Heights remain in high demand & there is very limited inventory for Buyers. While the current situation offers promise for buyers, fluctuating mortgage rates and limited inventory continue to be a challenge in the market….

Open House Activity

Open house attendance is up considerably from Q3 & Q4 of 2022. We are seeing new Buyers enter the market.

Rates

Mortgage rates have been trending lower for the last five consecutive weeks and are now hovering around 6.28 percent for a 30-year fixed-rate mortgage.

Locally, we see the majority of our clients looking at Jumbo products where Citi Bank & Wells Fargo have grown to be the most competitive rate wise, offering strong relationship pricing which move’s their 30 year fixed at 4/17 in the low 5% range.

Single Family Market SAN

Year-Over-Year Comparison