Why Are More San Francisco Homeowners Selling Their Homes?

In San Francisco, real estate usually slows down as summer ends, and fewer homes hit the market in the fall. This seasonal trend has been consistent for years. But this time, we saw something different. Mortgage rates dropped at the end of summer, encouraging more homeowners to list their properties.

According to recent data, the number of homes listed in September increased by 11.6% compared to the same time last year. This bump in inventory breaks the usual pattern of fall slowdowns in home listings. As Ralph McLaughlin, Senior Economist at Realtor.com, noted:

“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

What This Means for Buyers in San Francisco

If you’ve been shopping around for a home in San Francisco, you’ve probably noticed a few new listings popping up. This means you now have more options to choose from, especially compared to the past few months. And these are fresh properties, not the ones that have been sitting unsold.

However, keep in mind that mortgage rates have been unpredictable lately, and any future increases could slow down new listings. Right now, mortgage rates are a key factor driving homeowners' decisions to sell or stay put.

Why Should You Consider Buying Now?

Whether you’re looking to invest in a luxury condo, upgrade to a single-family home, or make your first real estate purchase, now might be a good time to jump in. The recent influx of homes on the market won’t last forever. If you find a property that meets your needs, it’s worth acting sooner rather than later.

While one month of increased listings doesn’t make a trend, it shows that mortgage rates, economic factors like inflation, and Federal Reserve policies are influencing the market. If rates continue to fluctuate, the number of homes for sale could change quickly.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says, "The rise in inventory ... implies homebuyers are in a much-improved position to find the right home and at more favorable prices."

Bottom Line for San Francisco Real Estate Investors

As mortgage rates dipped, more sellers decided to list their homes. This gives buyers and investors more options in the short term. If you're serious about making a move in the San Francisco market, now is the time to stay on top of new listings and act quickly. Let's connect to discuss your real estate goals and navigate the opportunities available before they're gone.