The San Francisco real estate market is seeing an increase in available homes for buyers compared to last year. While this is positive news for home shoppers, rising mortgage rates still present a significant challenge.
More Homes, More Choices
This year, homebuyers have a wider selection of homes to choose from. The number of active listings, which includes all homes on the market except those pending a finalized sale, has reached its highest level since 2020. Realtor.com reports that there were 734,318 homes on the market in April, a 30.4% increase from the same month last year. Additionally, new listings rose by 12.2%.
This boost in inventory is partly seasonal, as more homes typically hit the market during the spring homebuying season. However, it's still welcome news for a market that has struggled with a shortage of homes for the past two years.
Current Market Conditions
Despite the increase in listings, the number of available homes is still below pre-pandemic levels. In April 2019, there were approximately 1.1 million homes on the market, over 400,000 more than in April 2023.
Several factors contribute to the ongoing shortage of homes, including a decade of below-average new home construction and demographic trends that lead homeowners to keep their properties longer. Additionally, the significant gap between current mortgage rates and those from a few years ago discourages many homeowners from selling.
Impact of Rising Mortgage Rates
High mortgage rates remain a significant hurdle for many buyers. After reaching a 23-year high of 7.79% in October, the average rate on a 30-year mortgage stayed below 7% until last month. Recently, rates have been slightly above this threshold, increasing monthly costs for borrowers and limiting their purchasing power.
Realtor.com economists suggest that if mortgage rates stay elevated, the market may see a return to scarce inventory, reducing opportunities for buyers to find their ideal home.
Navigating the Market with an Expert Real Estate Broker in San Francisco
In this dynamic market, working with an experienced real estate broker in San Francisco is crucial. Navigating the complexities of rising mortgage rates and fluctuating inventory requires a knowledgeable professional. Whether you need a realtor in San Francisco or a real estate agent in San Francisco, the right expert can help you make informed decisions and find the best opportunities.
A skilled real estate broker in San Francisco can provide valuable insights into the latest market trends, help you find the best listings, and guide you through the entire buying or selling process. For those looking to buy or sell property, partnering with a seasoned professional ensures you have the support and expertise needed to succeed in this competitive market.
For personalized assistance and expert advice, consider connecting with a trusted real estate broker in San Francisco who understands the local market and can help you achieve your real estate goals.
