San Francisco’s real estate market is experiencing a turnaround as fewer home buyers are leaving the city for other metro areas. According to a recent report from Redfin, the net outflow of home buyers from the San Francisco Bay Area was down 13% annually in the fourth quarter of 2023, indicating a significant decrease from the peak of the pandemic-driven exodus. The number of buyers looking to leave the Bay Area was also down almost 50% from the September 2021 peak, reflecting a notable shift in market dynamics.
The resurgence in the San Francisco real estate market can be attributed to the return of in-office work by many Bay Area tech companies. As the city comes back to life, popular hot spots and public areas are once again bustling with activity. Ali Mafi, a San Francisco Redfin Premier agent, noted that the city is “as alive as ever,” with homes receiving multiple offers and the market expected to become more competitive in the coming year.
The shift in the real estate landscape is further evidenced by the Bay Area’s fall to the No. 2 spot on the list of metros home buyers nationwide are looking to leave. This marks the first time in over two years that the Bay Area has not been in the top spot. The decrease in outflow of home buyers signifies a positive trend for the San Francisco real estate market, indicating a potential resurgence in the city’s housing sector.
As the San Francisco Bay Area sees a decrease in the number of home buyers leaving, the real estate market is poised for a resurgence. The shift in market dynamics, coupled with the return of in-person work at tech companies, is contributing to a more competitive housing market. The city’s vibrant atmosphere and the decrease in outflow of home buyers signal a positive trend for San Francisco’s real estate sector, marking a potential turnaround in the market.