Current Housing Supply & Demand
Months’ Supply of Inventory (MSI) = the number of months it would take to sell the existing inventory of homes for sale at current rates of market activity: The lower the MSI, the stronger the market. Less than 4 months of inventory is usually considered a “Seller’s market”; 4-6 months, a balanced market; and over 6 months, a “Buyer’s market.” MSI in SF, at below 3 months, is very low – much lower than state and national rates. For just SF houses, MSI drops to 2.3 months; for houses in the hot Noe/ Castro/ Haight district, it’s an astonishingly low 1.6 months. This situation of strong buyer demand + low inventory typically exerts upward pressure on prices.