Austin Klar reports that San Francisco's housing market remains hot despite higher interest rates. Homes are selling 80% of the time month-over-month, sitting on the market for the shortest time in over a year, and fetching an average of 6% above asking price.
Higher interest rates have barely put a dent in demand for single-family homes in San Francisco. Absorption rates, which you can see in the green graph in the middle, stayed basically the same month over month at about 80%, which means about 80% of available single-family homes in San Francisco got into contract, and that is substantially higher than the figure we saw at the same time last year. And monthly supply of inventory, which is how quickly homes would sell if no new homes came to market, which you can see in the yellow graph up top, remained steady at 1.3 months, faster than the same time last year at 1.5 months, which was already incredibly fast. fast. A neutral market is in the 4 to 5 month range. Anything above that considered a buyer's market and anything below that a seller's market. So it's firmly in seller's market territory for single-family homes in San Francisco. There simply aren't enough homes to satisfy existing demand and you can see that play out with days on market and sales to list price ratios. Even in the face of higher interest rates, days on market are the lowest that we've seen in over a year and homes are selling on average for 6% above list price. Follow me for more San Francisco market updates.
