According to recent data from Redfin, the median San Francisco home found a buyer after just three weeks on the market in September, compared to the national figure of 51 days.
This marks a significant turnaround for a market that had been struggling for the past two years.
San Francisco and San Jose now share the top position among the 25 most populous US cities for the shortest time on market at 21 days each, followed by Seattle at 25 days.
The rapid sales pace stands in stark contrast to other large US cities, where buyers remain hesitant due to high mortgage rates and economic uncertainty. Austin, Texas ranks at the bottom of the list with homes taking a median of 88 days to sell.
Real estate agent Arrian Binnings of Christie’s International Real Estate has noticed the change in market conditions.
“The market had been in an ice age the past couple of years, but this autumn we saw our first signs of the big thaw,” Mr Binnings told the San Francisco Chronicle.
The acceleration appears to be driven by the artificial intelligence industry boom in San Francisco, bringing an influx of well-paid workers to the city.
While this hasn’t yet translated to significant price increases, experts suggest that could change soon as sales increase while listings decrease.
San Francisco’s western neighbourhoods are seeing the fastest sales, with homes in these areas typically selling within two to three weeks.
In contrast, properties in downtown and eastern San Francisco, which experienced more new construction in recent years, typically take longer to sell.
The city’s performance is particularly notable when compared to San Jose, which has traditionally been a competitive market but has cooled slightly.
San Jose homes now spend a median of 21 days on market, up from just 11 days in September 2023, while San Francisco’s median has decreased by nearly two weeks over the same period.
The combination of increased demand and declining supply has dramatically affected inventory levels.
Mr Binnings said listings are clearly on the decline, thanks to San Francisco’s limited housing supply and the wealth entering the market from tech workers selling their stock.
“I think San Francisco is behaving differently because it has emerged as a pocket of growth in a sea of stagnation, not just in California but across much of the country,” he said.
