2024 Year in Review: San Francisco Real Estate Market

The San Francisco real estate market in 2024 was a mix of resilience and recovery, with some ups and downs but ultimately setting the stage for a positive outlook. Here’s a recap of the year’s key takeaways:

• Prices and Inventory:
  High prices, limited inventory, and steady demand were the driving forces in the market. Some neighborhoods performed especially well, showing strong buyer interest despite a shifting economic climate.

• Tech Impact:
  The tech sector saw a 20% workforce reduction since 2022, which continued to affect housing demand, especially for condos and co-ops. Prices for these properties dropped by 14.7% compared to the peak market prices from spring 2021 to fall 2022.

• Signs of Recovery:
  There were clear signs of market recovery in 2024:

  • Single-family home sales rose by 14.8%.

  • Condo sales increased by 11.1%.

  • Both median sales prices and price-per-square-foot saw modest gains, signaling a return of buyer activity.

  • The luxury market ($3M+) also saw healthy growth, fueled by strong demand.

• Competitive Bidding:
  Bidding wars were still common, particularly in the most desirable neighborhoods. Many homes sold quickly and above asking price, reflecting strong buyer interest.

• Mortgage Rates:
  Mortgage rates have gone up slightly in recent weeks, with the 30-year fixed averaging 6.91%. Despite the rise, buyers are still re-entering the market, as evidenced by a steady increase in pending home sales.

• Looking Ahead to 2025:

  • The first half of January tends to be slow as the market recovers from the holiday lull, but things will pick up quickly as we approach the spring selling season.

  • Seller’s market expected in 2025: With tight inventory and continued demand, experts predict prices will remain high.

  • The National Association of Realtors forecasts a 2% increase in home prices nationwide, with stable mortgage rates and stronger job growth driving the trend.

In Summary:

2024 laid the foundation for a stable and growing real estate market in San Francisco. As we look ahead, the market is expected to remain active, with steady demand and rising prices likely throughout 2025.

Read on to my next post for more specific data from 2024.

Lauren Dorsey is a San Francisco-based real estate agent helping buyers and sellers navigate the market. Reach out to schedule a quick call to chat through your questions HERE.