by Clay Gjevre
San Francisco Market Update
The San Francisco real estate market has remained active and dynamic as we approach the end of 2024, offering both opportunities and challenges for buyers and sellers. Whether you’re looking to buy a luxury property in Pacific Heights, a single-family home in Noe Valley, or condos in neighborhoods like Nob Hill and the Mission District, it’s important to stay informed about current trends and strategies to make the most of your real estate transaction.
National Market Overview
Nationally, the housing market continues to show resilience. Median home prices have dipped slightly, but this is mainly due to the increased sale of smaller, more affordable homes. However, the price per square foot, a more reliable measure of home value, continues to rise, indicating that the overall value of homes remains strong.
Mortgage rates have been fluctuating, with a recent drop after the Federal Reserve lowered rates in September for the first time since 2020. However, a strong jobs report pushed rates up again temporarily. If you’re waiting for rates to decrease further, now is the time to keep a close eye on the market, as competition for available homes is likely to rise when rates decline again.
For home sellers, this means that while some buyers are waiting for better mortgage rates, there is still a strong pool of buyers ready to act, particularly in markets where inventory is limited.
San Francisco Housing Market Update
In San Francisco, the market remains competitive, especially for single-family homes. As of early October, we’ve seen a wide selection of San Francisco homes for sale, but buyers are proceeding with caution. This has led to some price reductions as sellers try to get their properties under contract before the seasonal market slowdown in the winter months.
Traditionally, San Francisco real estate heats up in the spring and cools in the fall, and 2024 has followed that trend. However, price cuts and a robust inventory heading into the final quarter of the year mean buyers still have good opportunities.
Single-Family Homes in San Francisco
If you're a San Francisco home seller with a single-family home, it’s important to know that this segment of the market is moving faster than condos. In the last three months, the median price for a single-family home has been around $1.58 million, with homes selling in about 27 days on average. Additionally, roughly 74% of these homes have sold for more than the list price, with offers averaging 11% over asking. For buyers, this means competition is strong in certain desirable neighborhoods, including Pacific Heights, Bernal Heights, and the Marina.
Condos in San Francisco
The market for condos tells a different story. While the median sales price for a two-bedroom condo is around $1.25 million, these properties tend to stay on the market longer. On average, it’s taking 60 days to sell a condo, and only about 34% are selling above the list price. This slower pace gives buyers more leverage for negotiation, but sellers need to be patient and realistic about pricing, especially if they’re hoping to sell before the end of the year.
Looking Ahead to 2025
As we look toward 2025, mortgage rates are expected to stabilize and possibly decrease further, which could drive more buyers back into the market. This would create a more competitive environment for homes, especially in high-demand areas like Russian Hill, Lower Pacific Heights, and Noe Valley.
For buyers, this could be the perfect time to act, especially if you’ve been waiting on the sidelines for lower rates. Getting pre-approved for a mortgage and being ready to move quickly will be essential, particularly in San Francisco’s fast-paced market, where demand often exceeds supply.
For sellers, if you’re considering selling your home in 2025, the spring market could be your best opportunity to attract motivated buyers and get the most competitive offers. With more buyers entering the market, prices are likely to rise, making it a great time to list your property.
Whether you're navigating the complexities of selling a luxury estate in San Francisco or searching for the perfect family home, understanding market conditions is key to making the right decisions.
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