MARKET UPDATE
Dear Clients, Colleagues, and Friends,
As we step into a brand-new year, I wanted to share some reflections on San Francisco’s real estate market in 2024 and what we might anticipate in the months ahead.
Last year, the market demonstrated remarkable resilience and recovery, even in the face of broader economic challenges. High prices, limited inventory, and steady demand continued to shape the landscape, with several neighborhoods standing strong despite a shifting economic backdrop.
The tech industry’s workforce reductions over the past two years influenced housing demand, leading to a 14.7% price drop for condominiums and co-ops compared to the market’s peak between spring 2021 and fall 2022. Yet, there’s reason for optimism—year-over-year data reveals a promising recovery:
• Single-family home sales increased by 14.8%.
• Condominium sales rose by 11.1%.
• Median sales prices & price-per-square-foot showed modest but encouraging gains.
• The luxury segment ($3M+) experienced healthy growth, supported by strong demand.
• Multiple Offers : Competitive bidding remained common in desirable neighborhoods, with many properties selling above asking price.
While mortgage rates have ticked upward recently—the 30-year fixed averaging 6.91%—buyers are steadily re-entering the market, encouraged by rising pending sales. As always, the first weeks of January tend to be quieter, but we can expect momentum to build as we approach the vibrant spring selling season, when refreshed listings often peak.
Looking ahead, projections suggest a continued seller’s market through 2025, bolstered by tight inventory and sustained demand:
• The National Association of Realtors forecasts a 2% nationwide rise in home prices.
• Stabilizing mortgage rates and improving job opportunities are expected to drive this growth.
Overall, 2024 laid a strong foundation for a dynamic year ahead in San Francisco real estate. Whether you’re considering buying, selling, or simply staying informed, I’m here to guide you every step of the way.
