Close
San Francisco Home Prices, Market Conditions & Trends March 2024
Happy Easter weekend!
Spring flowers are blooming, and we are “rolling” into Spring with much happening…
As we step into April, we are happy to report that there appears to be a number of bright spots reflecting the beginnings of a resurgence in our local real estate market that should attract both buyers and sellers.
Let’s now dive into key metrics that provide valuable insights into the current state of the market during the last few months. Here’s what we have witnessed in February and March –
  • Open house visitor numbers have surged.
  • New listings coming on the market have risen.
  • The pipeline of coming listings is filling up faster than last year.
  • The number of homes going into contract is climbing rapidly as the market wakes up.
  • Both buyers and sellers are re-engaging to a much greater degree, and the velocity of the market is accelerating.·
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. Most importantly, confidence is rebounding in San Francisco’s future as a financial and cultural center, as the heart, along with Silicon Valley, of the next big technology boom (AI), and simply as one of the great cities of the world.
Along with substantial macroeconomic improvements in interest rates (though they ticked up a little in February), financial markets – which recently hit all-time highs – and consumer confidence, these factors are also triggering a recovery in its housing market. This is now beginning to show up across a wide variety of indicators as we move into the spring selling season, typically the most active of the year.
Local Market Activity:
  • Year-over-year, the number of sales in February 2024 was up 32%. Sales volume will almost certainly continue to surge into the spring months.
  • Home sales of $3 million+ in January-February 2024 were up 60% year over year.
  • Year-over-year, the 3-month-rolling San Francisco median house sales price in February 2024 was up a little more than 2%. On a single-month basis (instead of 3-month rolling), it was up about 10%.
  • Year-over-year, the 3-month-rolling SF median condo sales price in February 2024 was up about 5%.
  • Median condo sales prices in San Francisco have been ticking back up in the last few months, and based on historical trends will probably continue to do so as we move into spring.
Active/Coming-Soon Listings with Median List (Asking) Prices*
• Houses – 279 listings – $1,795,000
• Condos – 648 listings – $1,099,000
• TICs – 66 listings – $995,000
• Co-ops – 25 listings – $1,995,000
• Townhouses – 9 listings – $1,100,000
Residential Income Properties:
• 2-Unit Buildings – 62 listings – $1,892,500
• 3-Unit Buildings – 35 listings – $2,300,000
• 4-Unit Buildings – 11 listings – $1,990,000
Numbers do not include new-project condo listings not posted to MLS. Data above as of 3/1/24.
  • Year-over-year, the number of new listings was up about 11% in February 2024.
  • Absorption rates saw dramatic jumps in February 2024 indicating a rapidly heating market.
  • The % of homes selling over list price surged in February 2024, and was up 28% year-over-year.
  • Days on market plunged in February 2024 as the market heated up. Homes are selling faster.
  • Sales price to list price percentages rebounded in February 2024, and were well up year-over-year.
  • Of the listings for sale on March 1, 2024, 27% were houses, and 73% were condos, co-ops, TICs & townhouses.*
  • February 2024 saw a large rebound in accepted-offer activity – a typical seasonal trend – and should see further increases moving into spring.
Interest Rates Update:
  • The average long-term U.S. mortgage rate fell slightly this week, welcome news for home shoppers facing rising prices and a stubbornly low inventory of properties on the market this spring homebuying season. The average rate on a 30-year mortgage slipped to 6.79% from 6.87% last week, mortgage buyer Freddie Mac said Thursday. A year ago it averaged 5.56%, Freddie Mac said. (Yahoo Finance 03/28/2024)
  • However, homebuyers largely dismissed this week’s drop as they wait for the Federal Reserve to cut rates, which is a possibility at the central bank’s June meeting. Not only would financing be cheaper, but more sellers could also be prompted to list their homes — a dual benefit for those who have been sidelined by affordability challenges. “Purchase applications were essentially unchanged, as homebuyers continue to hold out for lower mortgage rates and for more listings to hit the market,” said Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association. (Yahoo Finance 03/28/2024)
In summary, we have had some positive action in our local market and expect it to continue. Interest rates are steady, and the market is reacting to them. Sure they may get better, but if you are thinking about trying to time the housing market by waiting for lower rates – that isn’t a promising idea. As we have messaged before – when is the right time to buy? – It’s really when you’re financially ready and emotionally ready, and you find that home that fits your dreams and/or your needs. It’s always important to listen to the bell if a home rings yours 😊.
Our advice is to be ready. Get your preapproval and insurance opportunities confirmed in advance of finding a property of interest as the market moves quickly. Life circumstances change and it’s always better to have the facts and plan a successful strategy to buy or sell. We are happy to assist you as well as your family and friends with their real estate needs – in our local market, across the country, or internationally. Our network is extensive in our Compass family and beyond.
Are you wondering about the 2024 market specific to your property or one you have been watching? Or considering a sale? – we are happy to provide you with a free-market evaluation relative to a purchase or sale and address any questions you may have about the current market.
We Love What We Do – We can help you and your friends and family find and win opportunities in this market. Call us anytime and feel free to forward our newsletters or introduce us via email to anyone you know.
Warm Regards,
Callista & RicRoc
The Market Accelerates Rapidly Moving into Spring. 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.      
.     The post San Francisco Home Prices, Market Conditions & Trends March 2024 first appeared on Paragon Specific.

Ric Rocchiccioli

San Francisco Bay Area

DRE 01017500
subscribe to newsletter

Subscribe to My Newsletter

Sending

Thank you for your tireless optimism, enthusiasm and energy

“Thank you so much for everything. For making the process easier, for having a great read on the San Francisco real estate climate, understanding the neighborhood micro-markets. Thank you for your tireless optimism, enthusiasm and energy – the ultimate professionals who brought the personal touch we were looking for.”

Jenna & Angelo - Seller

We have never come across such a professional

“We have never come across such a professional team in the real estate industry in our experience in any city around the world in which we have lived… From the search, to the negotiation, to the closing, to the moving in and settling process, they went above and beyond the call to assure our extreme satisfaction and delight.”

Dan & Mara – represented as buyer and seller
Skip to content