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Market Update: San Francisco Real Estate Heats Up in Summer 2024

Vivre Real Estate June 25, 2024

Market Update

Market Update: San Francisco Real Estate Heats Up in Summer 2024

Market Update: San Francisco Real Estate Heats Up in Summer 2024

The San Francisco real estate market is sizzling this summer, with median home prices hitting recent highs and sales volume surging compared to last year. Despite interest rates settling around 7%, buyers are eagerly snapping up properties, often paying well over asking price.

San Francisco Real Estate Market Update

Home Prices Reach New Peaks

The 3-month-rolling median house sales price soared to $1,735,000 in May 2024, the highest since mid-2022. While condo prices dipped slightly year-over-year to a median of $1,135,500, the overall market remains robust.

Sales Volume Skyrockets, Especially Luxury Homes

Year-to-date home sales volume jumped 12% compared to 2023, but the real star was luxury homes. Sales of properties over $5 million exploded 62% higher than last year. San Francisco's luxury market is on fire!

Fierce Competition: Over Asking Price Is the Norm

Buyers are bringing their A-game, with 82% of house sales and 44% of condo sales closing over asking price in May. Houses averaged nearly 13% above asking, while condos eked out a 0.5% premium. With properties flying off the market in record time, serious buyers need to come prepared to compete.

Embracing the New Normal of Higher Interest Rates

Although 30-year mortgage rates have hovered around 7% recently, buyers and sellers are adapting to this new reality. A substantial portion of buyers are opting to pay all cash, keeping the market humming. And with the stock market reaching all-time highs, household wealth is fueling demand for San Francisco real estate.

In Other News: San Francisco's Resurgence Gains Momentum

San Francisco is proving the naysayers wrong as the city's comeback kicks into high gear. Despite gloomy predictions, the city actually saw a net population increase in 2023, bucking the trend of residents fleeing to states like Florida and Texas.

Billionaires Betting Big on San Francisco

Savvy investors, including billionaires and major corporations, are showing their confidence in San Francisco's future by snapping up office properties at discounted prices. They recognize the long-term value and potential of the city's real estate market.

Tech and Traditional Tenants Fuel Office Demand

The tech sector, especially the AI boom, is helping to fill office vacancies across the city. Meanwhile, traditional tenants such as finance and legal firms are also returning to the office, contributing to a more diverse and stable tenant mix.

Major Brands Expand Presence in the City

Leading companies are doubling down on San Francisco, with Visa opening a stunning new headquarters near Oracle Park, complete with breathtaking bay views. Nintendo has also chosen the city for its second US retail store, setting up shop in the iconic Union Square district.

Population Decline Reverses Course

In a remarkable turnaround, San Francisco's population decline has not only halted but reversed, with the city posting a small net gain in 2023.

Social and Cultural Scene Comes Alive

As San Francisco emerges from the pandemic, its vibrant social and cultural scene is roaring back to life, from sold-out concerts featuring artists like Skrillex to bustling night markets in Chinatown.

Anchor Brewing Saved by Billionaire Buyout

In a move that has cheered locals and beer enthusiasts alike, San Francisco icon Anchor Brewing has been acquired by a yogurt billionaire. This ensures that the beloved brewery will continue to be a vital part of the city's fabric for years to come. Raise a toast to Anchor's bright future! 🍻

Your Dream Home Awaits: Join Katie's Homebuyer Seminar!

Ready to buy in San Francisco's real estate market? Let Vivre's home buying specialist extraordinaire, Katie Funk Moss, show you the way and answer all your questions. Sign up now for Katie's free homebuyer seminar and learn insider tips.

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