It was a cold December in Bay Area real estate as home prices continued to slump across the region.new figures from CompassLuxury home sales were down 60% and ultra luxury home sales were down 69%. The average days on the market for homes increased to 44 days last month compared with 31 days in December 2021, and 31% of homes sold over asking, but that number was also down from 51% in December 2021 and 80% from its peak last April.
Compass agent Karen Mendelsohn Gould said she's already seen solid properties coming online since the first of the year in every neighborhood in terms of price point and condition. However, overall, she said she expects a tighter inventory. "The next two years may be flat to a somewhat softer market as we go through this cycle. Areas such as Pacific Heights, Sea Cliff, Presidio Heights, Russian Hill, Nob Hill as well as the newer luxury markets in Noe Valley/Upper Market will be hit to a lesser extent," Goodrich said.
Buyers will also have the opportunity to negotiate on price and terms this year, said broker Valance Steele with Compass, something that they haven't had the luxury to do, especially for single-family homes on the north side of the city.