The City View: August Update
Hope everyone had a great summer! Next week we are officially entering the fall market with grand hopes of increased inventory. This summer housing supply has been very dry and we should see a 40% increase of active listings by the end of September. Although this is a big increase, it is historically lower even compared to recent years. It seems likely that the Fed will lower interest rates which will increase buyer demand. Limited supply and increased demand usually lead to higher prices. Single family homes are always competitive, but we predict the condo market will also rebound and be competitive in desired areas and in updated units. AI has become the trendy word in San Francisco, but we are seeing its effect on the market with new money increasing purchasing power. We think this "boom" will lead to a healthy market for the next 3-5 years. People seem optimistic about our city and that translates to people wanting to live here. We feel it's a bull market and we are excited about it.
The inventory issue doesn’t look like it will be solved anytime soon
While much of the Bay Area is experiencing inventory issues, the vast majority of areas are seeing inventories begin to pile up. As we know, San Francisco has the opposite problem; the area can’t seem to keep enough inventory on the market. This trend has continued in July, with 15.93% less single-family inventory on a year-over-year basis and 19.91% less condo inventory. This is largely due to the fact that fewer new listings are hitting the market each month. On a year-over-year basis, the single-family home market saw 18.46% fewer new listings in July, and the condo market saw 5.09% fewer new listings.
Stay up to date on the latest real estate trends.
You’ve got questions and we can’t wait to answer them.
