While San Francisco’s outlying suburbs explode with housing interest, demand is starting to slow in the city itself, according to CNBC’s Jordan Novett and J.R. Reed.
The city’s housing inventory stands at its highest point in at least four years—1,483 as of August—and the median listing price has fallen below $1.4 million, the lowest point since February 2019. These homes are also sitting on the market for longer, and receiving fewer bids, than other city homes a year ago.
The coronavirus pandemic and corresponding recession have shaken the dynamics of the second-most expensive city to buy a home in the U.S. (The Silicon Valley city of San Jose boasts the highest median home sale price, according to data maintained by Zillow).
Brokers say many people simply no longer wish to live in densely populated areas, especially apartment buildings where they have to share common areas such as elevators. People are looking for enough space for a home office or two. They want their own outdoor space, and some people even want garages because they expect to buy cars in order to commute safely when they have to return to work. Plus, some people who have lost their jobs have been flocking to less expensive places.
