Market Update: San Francisco, CA
With current all-time low mortgage rates and work from home trends that appear to be here to stay, demand for real estate throughout San Francisco has remained “unseasonably high”, and can be expected throughout 2021 according to Kinoko’s Febuary newsletter.
“The median single-family home price rose slightly, and condo prices saw a minor decline month-over-month. Year-over-year, single-family home prices increased by 9%, while condo prices declined 6%.” – Kinoko
While prices of single-family homes stay consistent through the San Francisco Bay Area, inventory is predicted to remain low with fewer sellers coming to the market throughout 2021, increasing prices further, suggests the report. Days on Market has also drastically declined for single-family residences in this area compared to January 2020.
However, inventory for condos throughout the city remains high relative to previous years, according to the report. This combined with low interest rates offers a unique opportunity for purchasing in the San Francisco market with plenty to choose from. Days on Market has doubled since January 2020 for condos.
“From May to September 2020 (five months), inventory exploded. But we need to look at it through the lens of a city in a constant state of single-family home undersupply. Despite such a meteoric rise, inventory fell even faster than it rose, which speaks to the desirability of San Francisco.” – Kinoko
Even throughout the effects of the pandemic, San Francisco remains a resilient and desirable real estate market with unique opportunities.