Buyer activity is heating up in San Francisco, signaling renewed confidence and fresh opportunities for homeowners, investors, and first-time buyers alike. However, inventory remains tight, making it a competitive market.
One key metric illustrating this imbalance is Months Supply of Inventory (MSI). A seller’s market generally exists when MSI is below three months. Currently, San Francisco stands at just 1.3 months for single-family homes—a clear seller’s market—while condos are at 3.4 months, indicating a more balanced but still competitive segment.
Meanwhile, mortgage rates have been trending downward, boosting buyer purchasing power. Freddie Mac reported this week that the 30-year fixed-rate mortgage saw its largest weekly drop since September, which should drive more buyers into the market. Lower rates are also encouraging some homeowners to refinance, with refinance applications now making up nearly 44% of market activity—the highest level since December.
With strong demand and limited inventory, this spring promises to be an active season for real estate in San Francisco.
