As we reflect on the San Francisco real estate market at the close of 2023, it's apparent that scarcity remains a key player. Many homeowners have locked in a covid-era low interest rate which has lead to limited housing inventory available for sale. This has kept property values high and buyers patiently waiting for the ideal property that aligns with their meticulous preferences.
Examining the Q4 market snapshots on previous pages, you will see very few active listings towards the year's end. Sellers strategically withdraw their homes during the typically slow holiday season. This hiatus allows listings to re-enter the market anew, with zero days-on-market, leading to an anticipated surge in inventory between January and March, encompassing both returning and new listings.We're experiencing another formidable hurdle in the home buying process; the insurance industry introduces complexities for both buyers and sellers.
Looking ahead, analysts predict three or more interest rate drops in 2024, injecting optimism into the market. As we step into the new year, San Francisco's real estate scene is poised for shifts, and those nimble enough to adapt will find opportunities in the evolving landscape.