San Francisco Housing Market Update September 2023

Inventory for single-family homes in San Francisco in September grew last month, but even in the face of higher interest rates, pending transactions grew and prices remain elevated. As you can see with the light green bar in the top graph, the supply of single-family homes grew month over month, and you can see the same thing in the yellow graph where the monthly supply of homes grew from 2.2 months to 3.2 months. In a higher supply environment, you would expect prices to fall, but they didn't because there are still more buyers than sellers in today's market. As you can see in the bottom graph, the red line, home sale prices increased for the second month in a row. And as you can see at the red line in the top graph, those homes sold on average for for 102% of their list price. Days on market also fell from 33 days in August to 28 days in September, so things are still selling relatively quickly. We'll see how the recent interest rate spike toward the end of last month, beginning of this month impacts both buyers and sellers when we look at next month's data. Follow me for more Bay Area real estate and reach out if you want more information.