The San Francisco metro’s housing market is fiercely competitive, even as cities across the country turn to buyers’ markets.
Last week, 662 single-family homes sold across the metro last month, according to Housing Wire. Demand is outpacing supply in the market with the median listing price for homes at nearly $1.3 million.
Homes spent a median of 42 days on the market and an average of 81 days.
Last week, the San Francisco metro had 498 new listings, with a median price of $1.2 million and an average of $670 per square foot. Over 28 percent of active listings on the market took price cuts. That figure is below trends for the California housing market and across the country.
At the high end of the market, competition for homes is ruthless. There’s believed to be a mansion shortage because of the elevated demand and scarce supply.
“The city is just flush with cash right now — and there’s not enough inventory to keep up with it,” Peter Rodway, senior partner at Neal Ward Properties told the San Francisco Chronicle.
Many attribute the increased demand for high-priced properties to the artificial intelligence boom and the influx of companies and workers to the city looking for high-end housing stock.
“The future wealth in AI is out and touring homes right now. Some of them are touring $2 million condos. Some of them are touring $20 million houses. That wealth effect is going to continue to help drive demand,” Gregg Lynn, a luxury agent with Sotheby’s International Realty, told eht outlet.
Lenders could see steady demand for financing as buyers climb over each other for the limited listings on the market, while sellers might feel a rush to strike while the iron is hot and sell quickly.
With the housing market in San Francisco tight overall, buyers will likely continue to run into low supply and steady pricing heading into the winter.