San Francisco's housing market is experiencing sustained highs, partially due to the mortgage lock-in effect, where homeowners are reluctant to give up their low-interest mortgages for higher rates. This trend has led to the lowest number of homes entering the market in two decades. The San Francisco Chronicle reports that the number of homes for sale in the Bay Area is at its lowest in 20 years, with a drop in new listings starting January 2022. The mortgage lock-in effect is being observed across the country, contributing to the scarcity of housing inventory and perpetually rising prices. According to Redfin's analysis, this situation is not likely to change in the near future, as many homeowners are not motivated to sell unless mortgage rates drop significantly. Continue reading the complete article on SFist →
Photo: Parker Gibbons
