Austin Klar breaks down April's SF condo market slowdown. Monthly supply jumped from 2.6 to 3.4 months, absorption rates fell to 30%, and interest rates hit 7.5%. Prices dropped while the market inches toward neutral conditions.
Higher rates put a damper on the San Francisco condo and co-op market in April. And here are the key metrics I'm looking at in the coming months as labor and economic data start to crack. Monthly supply, which you can see in the yellow graph up top, which measures how long it'll take to sell out of all existing inventory if no new inventory came to market, rose from 2.6 months to 3.4 months, which is getting closer to neutral market territory, somewhere in the 4 to 5 month range. And absorption rates in the green graph, which measures the percentage of homes actually getting into contract every single month, dropped from 38% to about 30%. Both of these metrics indicate weaker demand in relation to supply in April compared compared to March. And no doubt about it, a big part of that had to do with interest rates rising to over 7.5% briefly in April. And the weaker demand definitely had an impact on prices. Average and median prices on an absolute basis fell month over month, and prices per foot were basically flat. Follow me for more San Francisco condo and co-op market updates.
