Real Estate Market Update for August 2024
What’s New in San Francisco Real Estate
Analytics and charts from Compass
Following the typical seasonal trend, the market cooled over the summer from the busier spring season. New listing and sales activity slowed, overbidding declined, and homes took longer to go into contract.
While mortgage rates declined to their lowest point in over a year, financial markets were experiencing substantial volatility early in August. It’s looking likely that the Fed will finally begin to drop their benchmark rate in September. Lower interest rates have a considerable effect on the cost of homeownership for those who need financing. A continuing decline in interest rates may spark increased market activity – not just for buyers, but potentially for sellers who held off listing their homes in the past 2 years due to the “mortgage lock-in” effect. The market usually sees a rebound in new listings in September as we head into the fall selling season; a drop in the interest rates could potentially spur more activity in the market.
Home Sales Volume
As is typical during the summer, the number of home sales in July continued to drop from spring sales. Year to date in 2024, sales volume is 7% higher than last year.
New Listings
As typically seen in the market, new listings peaked in the spring and have continued to decline since then. Activity tends to increase in September at the start of the fall selling season.
Active and Coming Soon Listings
The number of active and coming soon listings on August 1, 2024 were down slightly, compared to August 1, 2023. Of the listings for sale, 26% were houses and 74% were condos, co-ops, TICs, and townhouses.
Listings Accepting Offers
The number of listings going into contract in July 2024 was significantly higher compared to July 2023. The absorption rate for houses was around 35% and 16% for condos.
Average Days on Market
Overbidding List Prices
57% of home sales sold for over asking price. Of those, 75% of properties that sold for over asking were houses, and 38% were condos.
Average Sales to List Price
In July 2024, house sales averaged a sales price 10% over asking, while condos averaged a sale price 1% below asking.
House Market Dynamics
Condo Market Dynamics
Mortgage Interest Rates
As of August 22, 2024, the weekly average, 30-year conforming loan interest rate declined to 6.46%, the lowest rate in over a year.
The information herein is based on or derived from information generally available to the public and/or from sources believed to be reliable. No representation or warranty can be given with respect to the accuracy or completeness of the information.
