In my last post, I wrote that San Francisco’s residential market, fueled by the booming economics of local AI companies, was bucking the trend of most Bay Area counties by showing clear signs of strength while other counties stayed flat or faltered.  Recent data suggests that this trend could be accelerating.

In Contract, Pendings, Sales Volume All Up

First, let’s recall that the music stopped in Spring, 2022, when the Fed started aggressively raising the Fed funds rate to cool economic activity and accelerating inflation after having kept interest rates near zero during the Covid Pandemic.

The resulting rise in mortgage rates correlates precisely with a massive slowdown in the Bay Area residential market  as we entered 2022 (chart below).

With that background in mind, many of our statistics are now at or approaching levels they had reached before that 2022 slowdown.  Continue reading “SF Real Estate Heats Up as the Weather Cools Down”