Austin Klar breaks down why San Francisco condo demand is climbing despite higher interest rates. Absorption rates hit a five-year high, inventory dropped below three months for the first time since March, and prices rose both monthly and year-over-year.
What on earth is happening in the San Francisco condo market? Well, over the past several months, even in the face of higher interest rates, demand has actually increased. As you can see in the top graph, absorption rates, which measures the percentage of existing inventory getting into contract, actually rose for the third month in a row and was 5% higher last month than it was in last February. And the monthly supply of inventory, which is how long it would take for existing inventory to get into contract if no new inventory came to market, actually fell below 3 months for the first time since last March and is lower than it was last February. And as you can see in the bottom graph, that demand increase is having an impact on prices with average and median price prices rising month over month and compared to the same month last year. Follow me for more San Francisco condo market updates.
