San Francisco condo demand is at its strongest since before the Fed raised rates. Units sold jumped 8% year-to-date while inventory dropped 30% year-over-year, creating a seller's market as fewer owners cut prices.
Demand for condos and co-ops in San Francisco is the strongest I've seen since before the Federal Reserve started hiking interest rates. For years, that sector of the market has softened as people fled the city, fled the condo lifestyle in search of larger properties with more outdoor space and lower cost of living. But given improved city conditions and return to office mandates, more and more people are looking for condos in San Francisco once again. So far this year, there's been an 8% increase in the number of units sold despite a 6% drop in the number of units actually for sale. And that imbalance is causing inventory levels to drop to the lowest levels we've seen in years, causing increased competition for condos. Monthly supply, which measures how long it would take to sell out of all existing inventory if no new inventory came to market, has fallen each of the past 4 months and is now trending into seller's market territory below 4 months of supply. It's down over 30% compared to the same time last year, and fewer condo sellers are cutting their ask price in the same time over the past several years as well. So if you own a condo and you've been waiting to sell, the market is definitely turning in your favor. Share this with somebody thinking of making a move and follow me for more Bay Area real estate.
