Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

SHOCKING TRUTH About The San Francisco 2024 Housing Market

Name: SHOCKING TRUTH About The San Francisco 2024 Housing Market
Uploaded: 2024-04-29T01:00:24+00:00
Duration: 48 s
Channel: Austin Klar
Description: In this brief commentary, Austin Klar presents three key metrics that indicate a strengthening demand for single‑family homes in San Francisco compared…

29 Apr 2024 · 1 min

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In this brief commentary, Austin Klar presents three key metrics that indicate a strengthening demand for single‑family homes in San Francisco compared with the previous year. He first explains the absorption rate, showing it rose to just over 85% in March 2024 (up from 73.5% in February and 62% in March 2023). He then discusses monthly supply, noting it fell to 1.2 months in March (down from 1.4 months in February and 1.6 months a year earlier), meaning existing inventory would be sold out quickly if no new listings appeared. Finally, he highlights the declining share of homes taking price cuts, with the 2024 line lower than 2022, 2023, and 2020. Klar concludes that higher demand is the primary driver of continued price growth and elevated price levels in San Francisco, and he invites viewers to follow him for more Bay Area real‑estate updates.

Chapters

3 metrics showing demand for single-family homes in San Francisco is stronger than what we saw last year. First up is the absorption rate shown in the green graph up top. This measures the percentage of available homes that are actually getting into contract. And as you can see, a little over 85% in March, up from 73.5% in February, and up from 62% last March. Second is monthly supply, the yellow chart in the middle, basically showing how long it will take to sell out of all existing inventory if no new homes came to market. The lower the number, the stronger the demand. And here at a staggeringly low— March is 1.2 months down from 1.4 months in February, and down from 1.6 months last March. And the last metric is the percentage of homes taking price cuts. And as you can see in the bottom graph, the black line representing 2024, fewer homes taking cuts compared to 2022, 2023, and 2020. Bottom line reason why home prices are growing in San Francisco and remain elevated is because demand is up. Follow me for more Bay Area real estate.