2022: February San Francisco Real Estate Insider

What a crazy January we just experienced from a "state of the market" perspective in San Francisco. There was no slow roll out of listings – or (agents) holding back listings until spring or post-Super Bowl. The inventory flowed quickly after the 1st and the demand was (and still is) insatiable. 

The most active segment is the single family home market under $2M. It’s not uncommon to see houses sell for 50%+ of their list price and receiving 20+ offers. Some of the sale prices are real head shakers. 

Part of the sub-$2m frenzy is driven by buyers wanting to lock in cheap money before mortgage rates climb further. For reference, rates are already 14% higher than they were at the beginning of the year and 34% higher than they were a year ago. Expect to see the Fed continue to bump rates upwards.

The top of the market in San Francisco is still slow to come back to what would be considered competitive for buyers. If you recall, it was slow in ‘Q4 and it could see an uptick in activity in early ‘Q2. Luxury Bay Area markets (outside of San Francisco) continue to be very competitive for buyers. In fact, all markets within commute distance to San Francisco are extremely competitive in all price points.

Let’s look at some key data points for the state of the market.