It’s been an eventful last 2 weeks, to say the least! Before we start to look ahead to 2025, we think it will be helpful to start with a look backward to ground us. In this month’s report, we’ll focus on a year-over-year comparison. And, the next report will focus on trying to make sense of what we think is to come in the new year.
With that…let’s dig into a breakdown of how the current market conditions compare to 2023. As always, the goal is to help you stay informed, so you can make informed decisions about buying or selling your home.
At a glance:
So What?
The rise in home sales indicates a more active market in 2024, suggesting that buyers are finding opportunities despite some challenges. That said, homes stay on the market a tad longer, giving buyers a few more days, in most cases, to take their time doing their due diligence. In some cases, this is also giving buyers more negotiating power. This is also shown in the slight decline in the YoY median price of homes across the Bay Area. And, a slight increase in inventory levels, though still a seller’s market, suggests more choices for buyers.
On the other hand…how long will this last? It’s unclear, as the macroeconomic trends show a more uplifting story. The slight boost (and upward trend vs downward trend this time last year) in consumer confidence levels suggests a more robust economic environment where individuals feel more secure about large purchases like homes. Inflation levels continue to move in the right direction (hopefully, that continues!). And, most notably, the steep rise in the stock market performance over the last year indicates wealth creation, which creates more opportunities for people to take their gains and diversify into real estate.
Stock Market Chart:
Breaking it down for buyers and sellers:
For Buyers, the improved economic environment and slightly cooler housing market dynamics present an opportune time to enter or expand in the real estate market. With more options and possibly reduced competition on listings, this is a strategic moment to make informed purchases.
For Sellers, while longer listing times and slight price reductions might be challenges, the buoyant economic mood indicates strong market participation. That said, pricing strategies and appropriate property prep become paramount in attracting motivated buyers as fast as possible.
OUR COLLECTIVE WINS
$1.305M | 2 beds | 2 baths | 1489sf
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This is such a special and unique condo in the HEART of Pac Heights, half a block off of the lively Fillmore St. We successfully closed on this home for dear friends and clients – at almost $100k below asking!! That is LESS THAN $900 / sf! WOW!
$1.016M | 2 beds | 1 bath | 1129sf
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Our lucky and savvy buyers snagged this darling 2 bed/1 bath condo in NoPa for $75k under list price AND almost $150k under what the seller bought it for in 2017. Really excited these guys got their dream home right off of Golden Gate Park.
$1.050M | 2 beds | 2 baths | 832sf
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This was a great seller story! The property had been on the market previously with another agent for 6 months with no interest, disclosure requests, or offers. But, we took it over, made some strategic changes, and got it into contract within 1 week of being on the market (above asking!).
Let’s keep this momentum going! Whether you’re buying your first home, looking for a good investment (for yourself or otherwise!), or contemplating selling, we’re here for you! As we always do, we’ll assess your goals and needs, dive into the market conditions that are most relevant to you and align on a strategy to get you more!
Even though the year is winding down, there’s still time if you want to benefit from some of the opportunities we’re seeing out there!
