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The San Francisco real estate market is competitive, with most homes getting multiple offers. Another exciting thing about the market is that average homes usually sell 8% above the listing price and go pending within 30 days. Some even sell for 20% above the listing price and go pending in less than 13 days.

While the real estate across many countries may have been slow in 2021, the experience at San Francisco was quite different.

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Overall demand for real estate

The demand for real estate during and post-pandemic has been extraordinary, increasing home sales prices. What motivated this? First, the number of homes for sale dropped, and the demand for second homes increased.

The interest rates were also low. Other factors that motivated the high demand for homes are the work-from-home office culture, increased tech industries, and the stock market volatility.

San Francisco real estate

The demand for real estate in San Francisco was like no other. While the average price for a home in the US was about $500,000, the price in Francisco was about $1.5 million. This is a trend seen in the entire Bay Area, including Francisco.

There was an 18.2% increase in the median sales price from the previous year. Worth noting also is that the prices resulted from the record-low supply for homes in the country. There were only 1.38 million homes available for sale, a 23% drop from the previous year.

Due to the drop in inventory, the ripple effect was a drastic drop in homes and a record increase in prices. In 2021, homes sold in 16 days, from about 39 days. Interestingly, over 70% of the homes sold above the listing price.

The high demand for homes and the record low inventory thus saw a record-breaking bidding battle never experienced before.

Remember, the high demand for homes had increased in the rest of the country; San Francisco outpaced the. About 56% of the homes were above listing price in the rest of the country, for San Francisco was over 70%.

In the rest of the country, the increase in demand for homes also saw an increased desire for luxury homes ownership. This also saw an increase in the median sale price of luxury homes in the U.S. the trend was also mirrored in San Francisco, seeing a significant and sharp increase in the sales of luxury homes.

San Francisco real estate 2022 trends

San Francisco’s residential real estate trend in 2022 will be similar to that of 2021. We are talking about a high demand for homes motivated by factors such as low interest and volatility of the stock market.

While there will still be an increase in the value of homes in San Francisco, it may be not record-breaking as seen in 2021. The forecast is about 11% in home value growth. As of January 2022, San Francisco real estate market was still unchanged, featured by low inventory and high demand.