Hope 2024 is off to a great start! I’ve got some new updates re: the Bay Area housing market. So, sit back, grab your favorite drink, and let’s dive into what you need to know now.
The Big News: Why Everyone's Talking About the Housing Market 🏡💬
1. Tech Stocks are Soaring and Reddit is Set to IPO’s Next Week – This is really the headline of the housing market uptick. Tech stocks are up, and this surge is fueling optimism and buying power in our local market. When stocks tanked in 2023, people saw the importance of diversification, and they’re putting that to play now.
2. AI is Leading the Charge – We always knew that SF would still be relevant post the doom-loop cycle – and, now is that moment, given in large part by AI. SF is still the heartbeat of innovation and tech. Anecdotally, we’re experiencing this first hand with a number of clients. For example, we sold a place because our seller had relocated to Europe in Covid. Well, he’s now looking for a SF pied-e-terre, as his AI work is bringing him back to SF, at least part time. SF Examiner published this heat map last week about new AI office leases in downtown San Francisco:
3. Falling Interest Rates – As we’ve been saying…mortgage rates are headed downwards, with short-term volatility along the way! We’re seeing rates for our clients in the low/mid-6’s. Full disclosure: the inflation report that came out on Tuesday didn’t show the progress we all were hoping for, so rates ticked back up a bit. But, overall, rates trending downwards means more affordable borrowing costs – and then, just wait until you refinance down the road!
So, What Does This All Mean for Our Market?
- # Of Sales are Climbing: We kicked off the year with a 14.4% increase in home sales in January 2024, compared to December 2023. It was the first year-over-year sales gain in 31 months, signaling a robust start to 2024.
- Prices Continue To Increase: In January, we saw prices in SF increase by 10.5% YoY; San Mateo and Marin counties were up 21.5% and 26.9% YoY (respectively). And, Alameda County saw 8.7% growth. With rates expected to continue falling, we’re likely to see prices maintain their upward trajectory.
- Inventory Is also Up: For the first time in 19 months, new listings have increased, particularly in San Mateo County (29% YoY) and Contra Costa (11.4% YoY). This means a more dynamic market with more options for buyers.
While it’s too soon to say “I told you so” we’re really optimistic about what’s in store for 2024!
Navigating the Market: Tips & Insights 💡
Looking Ahead: What This Means for You 🚀
Whelp, it’s probably too late to double down on Nvidia stock (maybe?), but it’s NEVER too late to get in the real estate market. 😉The Bay Area market is heating up, so don’t let it get away from you, if you’re ready.
With that said, at the end of the day, your personal situation is unique to you. We’re here to make sense of these trends and guide you through every step of the way.
Until next time, stay informed and stay excited about the opportunities ahead! 🌟
PS. Did AI write this or did Blakely 😉 Hit “comment” and let me know what you think!
