The Bay Area, along with the rest of the country, has not returned to anywhere near pre-pandemic inventory levels after the buying boom last year. However, we were happy to see more single-family homes come to market in the first half of the year, which drove a much-needed increase in inventory. We can compare home sales and new listings from 2021 to 2022 to see the effects of fewer homes coming to market. Fewer homes and the rising rate environment have dropped demand.
Months of Supply Inventory still indicates a sellers’ market for single-family homes
Months of Supply Inventory (MSI) quantifies the supply/demand relationship by measuring how many months it would take for all current homes listed on the market to sell at the current rate of sales. The long-term average MSI is around three months in California, which indicates a balanced market. An MSI lower than three indicates that there are more buyers than sellers on the market (meaning it’s a sellers’ market), while a higher MSI indicates there are more sellers than buyers (meaning it’s a buyers’ market). MSI has trended higher (from a sellers’ market toward balance) since spring, but despite the changing market environment, single-family home MSI still indicates a sellers’ market, but just barely for Monterey and Napa counties. The condo markets still mostly favor sellers, with the exception of the Marin, San Francisco, and Solano markets, which favor buyers.
Local Lowdown Data
Our team is committed to continuing to serve all your real estate needs while incorporating safety protocol to protect all of our loved ones.
In addition, as your local real estate experts, we feel it’s our duty to give you, our valued client, all the information you need to better understand our local real estate market. Whether you’re buying or selling, we want to make sure you have the best, most pertinent information, so we put together this monthly analysis breaking down specifics about the market.
As we all navigate this together, please don’t hesitate to
reach out to us with any questions or concerns. We’re here to support you.
