Austin Klar reports San Francisco's single-family home market tightened in February 2024 despite rising rates. Absorption jumped to 74% from 58%, monthly supply fell to 1.4 months, and homes sold 4% above list price. Days on market dropped from 53 to 32.
Rising interest rates last month did not slow down the single-family home market in San Francisco. Absorption rates based on pending sales, which you can see in the top graph, which is effectively the percentage of available inventory getting into contract, rose from 58% in January to 74% in February, which is up from 51% last February. And monthly supply of inventory based on pending sales, which is in the middle graph, effectively how long it would take for existing inventory to get into contract if no new inventory came to market, fell from 1.7 months in January to 1.4 months in February, which is down from 2 months last February. For context, a neutral market is 4 to months of supply, so this is firmly in seller's market territory. And effectively, there's way more demand at today's interest rates and today's prices than the same time last year and last month. You can see that uptick in demand play out with days on market going down from 53 days to 32 days and homes selling 4% above their list price. Follow me for more San Francisco housing market updates. Follow me for more San Francisco housing market updates.
