September 2024 Newsletter

San Francisco Real Estate

Clients, friends, and colleagues:

Data from August (and the summer in general) is never the best barometer for market activity, as it's routinely a slower season (less data) before listings to begin to launch in droves after Labor Day.

3-month rolling figures, year-over-year, show the median sales price is slightly up (+2.6%) for single-families and slightly down (-2.2%) for condos.

Here in the early stages of the fall market, there's a lot to be optimistic about with regards to real estate activity in San Francisco:

1) Interest rates have hit their lowest point since Spring 2023: ~6.2% for 30-yr fixed.

2) The Federal Reserve announced a 0.5 point cut in interest rates yesterday, signaling a significant shift as inflation appears to have subsided. This move reflects the Fed's confidence in the economy's stability and aims to further support growth. Analysts view this decision as a positive indicator, suggesting that the pressures of rising prices may be easing, creating a more favorable environment for consumers and businesses alike.

3) Despite recent stock market volatility, year-to-date, the Dow remains +10%; Nasdaq +19%; and the S&P +18%.

Next month's market report will have meaningful September data. On the ground we're seeing plenty of new listings on a daily basis as sellers look to take advantage before the winter doldrums.

Prized neighborhoods, well-priced single-family homes, and boutique condos are seeing healthy demand. Opportunities remain in various sectors where motivated sellers can be found. I know of several.

Any quesitons, needs, specific property inquiries, etc, feel free to message me directly.

Cheers,

Matt

Matt Wathen

DRE# 01879082

M: 415.920.3213

[email protected]

Statistics are generalities, essentially summaries of widely disparate data generated by dozens, hundreds or thousands of unique, individual sales occurring within different time periods. They are best seen not as precise measurements, but as broad, comparative indicators, with reasonable margins of error. Anomalous fluctuations in statistics are not uncommon, especially in smaller, expensive market segments. Last period data should be considered estimates that may change with late-reported data. Different analytics programs sometimes define statistics - such as "active listings," "days on market," and "months supply of inventory" - differently: what is most meaningful are not specific calculations but the trends they illustrate. Most listing and sales data derives from the local or regional multi-listing service (MLS) of the area specified in the analysis, but not all listings or sales are reported to MLS and these won't be reflected in the data. "Homes" signifies real-property, single-household housing units: houses, condos, co-ops, townhouses, duets and TICs (but not mobile homes), as applicable to each market. City/town names refer specifically to the named cities and towns, or their MLS areas, unless otherwise delineated. Multi­county metro areas will be specified as such. Data from sources deemed reliable, but may contain errors and subject to revision. All numbers to be considered approximate.

Many aspects of value cannot be adequately reflected in median and average statistics: curb appeal, age, condition, amenities, views, lot size, quality of outdoor space, "bonus" rooms, additional parking, quality of location within the neighborhood, and so on. How any of these statistics apply to any particular home is unknown without a specific comparative market analysis.