Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

San Francisco Condo Market Update January 2024

Name: San Francisco Condo Market Update January 2024
Uploaded: 2024-02-14T02:00:05+00:00
Duration: 43 s
Channel: Austin Klar
Description: In this concise market commentary, Austin Klar reports that San Francisco condominium demand is gradually reviving but not enough to trigger major price…

14 Feb 2024 · 1 min

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In this concise market commentary, Austin Klar reports that San Francisco condominium demand is gradually reviving but not enough to trigger major price increases or a market crash. He references three key graphs: (1) a price‑cut rate line showing 2024 cuts lower than 2023 yet still above pandemic‑era lows; (2) an absorption‑rate chart indicating pending‑sale percentages are higher than the same period last year and higher than the late‑2023 peak when mortgage rates exceeded 8%; and (3) an average price‑per‑square‑foot graph showing a modest rise from December to January and roughly flat compared with the previous January. Klar concludes that, barring a significant shift in supply‑demand balance, the current modest upward trend should persist, and he invites viewers to follow him for future updates.

Chapters

Demand for condos in San Francisco is very slowly coming back to life, but I wouldn't expect any huge jumps in price, and I certainly wouldn't expect a big crash anytime soon. As you can see in the top graph, the percentage of homes taking price cuts, the small black line representing price cuts so far in 2024, trending at lower levels than 2023, but still higher than during the pandemic when interest rates were at all-time lows. And as you can see at the green graph at the bottom, absorption rate based on pending sales, the percentage of condos getting into contract is up from the same time last year, and it's also up from late last year when interest rates peaked over 8%. And this slight increase in demand is exactly why prices haven't crashed as you can see in the middle graph, average price per foot of condos up December to January and roughly the same from January of last year. You should expect this trend to continue unless supply-demand dynamics really start to shift. Follow me for more San Francisco condo updates.