Real Estate Market Update for October 2024
What’s New in San Francisco Real Estate
Analytics and charts from Compass
Job growth last month topped all estimates and wage growth accelerated, reducing the odds the Fed will opt for another big interest-rate cut in November. In the meantime, the increase in the number of homes for sale continues to outpace sales activity. That said, many homes are still selling quickly for over asking price; as ever, it depends on the specific property, its price, location, condition, and circumstances. October is usually the last big sales month of the year before the market cools as we head into the mid-winter holidays.
Home Sales Volume
September closed sales are a reflection of the slower market in the month of August which is typical. Sales should increase in October, reflecting the beginning of the fall selling season and more new listings. In September 50% of sales were houses and 50% were condos, TICs, co-ops, and townhouses.
New Listings
New listings in September 2024 were lower than in September of the past recent years.
Active and Coming Soon Listings
The number of active and coming soon listings on October 1, 2024 increased from September 1, but was down year-over-year. Houses are still making up a significantly smaller portion of inventory than condos. Of the listings for sale, 30% were houses, and 70% were condos, co-ops, TICs, and townhouses.
Listings Accepting Offers
September 2024 saw an increase in the number of listings going into contract, reflecting the increase in new listings coming on the market that month. The absorption rate for houses continues to be much higher than for condos.
Average Days on Market
Condos continue to see a much higher average days of market than houses.
Sales Over List Price
In the third quarter of 2024, 74% of house sales and 35% of condo sales sold for over the list price.
Average Sales to List Price
Price Reductions on Active Listings
Price reductions in September 2024 were up from August, but down from September 2023. The market tends to see an increase in price reductions before the mid-winter holiday slowdown.
House Price Trends
As is typical, the median house sales price dropped from the second quarter, but year over year, it was up a little over 2% in Q3.
Condo Price Appreciation
Year over year, the 2024 median condo sales price in Q3 was up by about 4%.
Mortgage Rates
Following a stronger than anticipated jobs report on October 4, mortgage rates increased slightly.
Federal Funds Interest Rates since 1981
On September 18, 2024, the Fed reduced its benchmark rate by a half point, the first reduction since 2020.
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.
