The Bay Area recorded a net outflow of 26,000 homebuyers in the fourth quarter of 2023, down 13% from one year earlier, according to a new data report from Redfin (NASDAQ:RDFN).
An analysis of home search activity on Redfin.com determined the flow of homebuyers looking to move away from the Bay Area was down nearly 50% from its September 2021 peak during the pandemic-driven remote work boom. The decline in outbound migration is attributed to a decline in home prices – the median sale price for San Francisco is nearly $1.3 million, an admittedly hefty sum but also the lowest level since early 2019 – and the shift by major tech companies in the Bay Area that requires employees to be in the office instead of working remotely.
“If San Francisco could talk, it would quote Mark Twain: ‘The reports of my death are greatly exaggerated,’” said Ali Mafi, a San Francisco Redfin Premier agent. “The news says it’s a ghost town, but restaurant reservations at foodie hotspots are impossible to get, and Dolores Park is packed on the weekend with residents and tourists. With the big boom in AI and many tech companies requiring in-person work, San Francisco is as alive as ever. Homes are getting multiple offers, and I see the market getting more competitive as the year goes on.”
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