We all know how it goes… a few weeks after the holidays have passed you wake up on a gray, rainy morning, throw on your favorite pair of comfy jeans only to discover that they aren’t comfortable anymore! Blame it on the washing machine or all that holiday indulging, but suddenly your jeans feel too tight to be comfortable.
The San Francisco real estate market feels about the same right now. As you can see from the below chart, which is based on data from the SFARMLS deemed to be reliable but not guaranteed, we ended December with less than a two months supply of inventory for buyers. Which is really, really low.
Months supply of Inventory is a measure of how quickly things are selling. It essentially looks at the number of homes selling in a given month and compares that to the total number of homes actively for sale. The metric tells you, at the current sales rate, how long it would take for all of the existing to be sold. A real estate market with less than 5 -6 months supply of inventory is generally regarded as a seller’s market, 5 – 6 months of inventory is considered a balanced market, while more than that is considered a buyer’s market.
If you are a buyer in the current market, though, don’t despair. Just like a dedicated fitness and healthy eating plan will have you back in your favorite jeans within a few weeks, San Francisco is due for it’s post-Super Bowl inventory bump. Real estate agents almost always freak out about this time each year, absolutely distraught that there just isn’t enough for sale. And at the moment, there really isn’t.
But if you can be patient, exercise regularly, and eat healthy I promise you that you’ll be able to comfortably wear your favorite jeans to the housewarming party for your new house!