San Francisco Home Prices Didn't Crash -- We Need More Homes for Sale

22% fewer homes for sale in San Francisco in December 2023 compared to December 2022, and 50% less than we saw in 2019. There are simply not enough sellers willing to put their homes on the market with interest rates as high as they are. Demand is there. If you look at the bottom graph in yellow, you could see the monthly supply of homes, the amount of time it would take to sell out of all existing housing inventory if no new homes came to market was just 1.2 months in December, which is substantially lower than what is considered a neutral market, 5 to 6 months. People simply just don't want to trade their existing mortgages or, you know, houses with no mortgages at all for expensive mortgages. And that's exactly why home prices didn't fall off a cliff this year. As you can see, the blue graph at the bottom, price per foot December of 2023 is higher than it was in December of 2022. And as you can see in the top graph, the red line homes were selling closer to their list price than they were same time last year. Demand is there. We simply just need more homes for sale. Hopefully interest rates coming down will unlock a little bit of inventory. Follow me for more San Francisco housing market updates.