SAN FRANCISCO (KRON) – The San Francisco Bay Area housing market is on the rise, and it’s driven by two factors, according to a new study. Report from Redfin. Last month, pending home sales in San Francisco jumped 17% year-over-year, and the typical home sold in about 20 days, twice as fast as the typical home sells in the United States.
And homes are moving faster in San Jose, with a typical home under contract in September done so in 19 days — faster than any other major subway in the United States. San Francisco ranked second at 21 days and was one of three major U.S. metros where homes sold faster than last September.
The 3rd Bay Area metro, Oakland, is also among the top 10 metros in the US where homes sell fastest within 28 days.
What’s behind it?
According to Redfin, there are two main factors behind the Bay Area housing market’s surge: artificial intelligence and the return to the office.
“Silicon Valley is home to several major AI companies, including OpenAI and Anthropic, which have been employing dozens of workers and offering generous pay packages,” Redfin wrote in the report.
“Many companies are also asking workers to return to their offices, prompting more people to move to or near the city,” the report continued, citing. Data Which indicates that SF office visits jumped 19% year over year last month.
The report goes on to say that the AI boom in the Gulf region has also contributed to improved affordability for homebuyers.
“San Francisco is seeing a boom in home buying among young tech workers who have just received big signing bonuses with AI or other tech companies and are thinking about starting families,” said Ali Mafi, a real estate agent at Redfin Premier. “Many people have more confidence in buying homes because they earn money, which means they spend less of their salary on housing costs.”
Redfin also reports a shrinking supply of homes on the market, with active listings declining in San Francisco and San Jose last month.
“There aren’t a lot of homes for sale in the Bay Area because many potential sellers here can wait until the price is right,” Maffei said. “Many homeowners are considering selling but are putting it off until home prices rise and mortgage rates fall further.”