IMACE

On September 18th, the Federal Reserve Bank dropped its benchmark rate for the first time since 2020 - a very positive development for housing markets....

"The time has come for policy to adjust... the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks...My confidence has grown that inflation is on a sustainable path back to 2 percent." Jerome Powell, Chairman, Federal Reserve Bank, 8/23/24

As of August 8th, mortgage rates had reached the lowest point in over a year, while financial markets were experiencing significant volatility.

The median house sales price in Q2 2024 rose 6% from Q2 2023, while the median condo sales price declined by 2.5%.

House sales averaged a sales price almost 13% over asking price, while condos averaged a sales price about a 1/2% higher than asking price. Both were the highest percentages since mid-2022.

So far in spring 2024, the Bay Area has been seeing its strongest luxury home market since the spring 2022, the very heated end of the pandemic boom. Still, luxury market indicators are generally cooler, and sometimes much cooler, than more affordable segments – though, this is not unusual by long-term standards.

Home prices, sales volume, luxury sales, the number of new listings, and overbidding — all increased as the market moved into spring. Not every listing sells, though, and price reductions also increased.

Markets have heated up dramatically through the end of Q1, with Q2 expected to see significant home price increases. Most if not all Bay Area residential markets are seeing or will probably soon see their strongest market dynamics since the pandemic boom ended in spring 2022.

There is a growing sense that in 2023 San Francisco hit its post-pandemic low - economically, socially, and certainly in media coverage - and that it has now begun a significant recovery on all those fronts.

Open house visitor numbers have surged, new listings coming on the market have increased, and the coming soon listings pipeline is filling faster than last year.

Dramatically improving economic indicators suggest a brighter 2024 housing market.