As we mentioned in the Big Story, the market has cooled for both buyers and sellers, largely because of higher interest rates. As we enter the new year, the market feels familiar — but from the era before 2020. Demand in San Francisco is evergreen, so we aren’t worried about matching buyers and sellers. That said, we’ll likely not have the frenzied buying we experienced in 2020 and 2021 anytime soon. To make a long story short, there is definitely less stress on the buying side of the market. Prices will most likely increase in 2023, but at a more modest rate of around 5-6%, which makes for a much healthier market than the volatile price movements that occurred over the past three years. Single-family home prices increased 2% over the past two years, after the 27% decline from the March 2022 peak, and condo prices were down 10% over the past 24 months after a 28% decline from the April peak. When we look back further to Q4 2019, single-family home prices have increased by 3%, while condo prices have decreased by 10%. Without any signs of interest rates dropping, we’re entering a stage of slower, longer-term growth.