SF Real Estate Market Shows Love for Early Spring

Vivre Real Estate February 26, 2024


SF Real Estate Market Shows Love for Early Spring

Love Lingers in the Market: A Look at SF Bay Area Real Estate Trends

Even though Valentine's Day has passed, the affection for investment opportunities continues in San Francisco, particularly within the stock market. The recent surge in big tech stocks, notably with the S&P 500 reaching a new record high thanks to Nvidia's remarkable earnings and the burgeoning AI industry, mirrors an interesting trend in the San Francisco Bay Area's real estate market.

Demand in SF Real Estate Echoes Chip Shortages

Driven by the critical need for advanced microchips, Nvidia's ascent to become the world's fourth most valuable company in some ways parallels the current state of real estate in the SF Bay Area. The market for single-family homes, especially those priced between $1-3M, is remarkably tight, with just 0.8 months of inventory available as of February 1. Similarly, the condo market is showing signs of revival, with inventory decreasing significantly from 5 months in October 2023 at the peak of mortgage rates to just 3 months in January 2024.

Spring descends on the SF Real Estate market.

Signs for the Spring SF Real Estate Market

Spring is always a busy time for SF Bay Area real estate. So far this year, the early spring season is abuzz with an increase in open house visits and a slight rise in new listings compared to last year, signaling a rejuvenating market. With mortgage rates holding steady around 7%—effectively closer to 6% for many local buyers—the thriving economic landscape is poised to further invigorate demand for homes in our highly stock-market-sensitive region.

In January, we already began to see a shift, with pending sales of SF homes increasing significantly year-over-year. Both houses and condos saw a marked increase in accepted offers, by 48% and 28% respectively, and sellers enjoyed a higher median sales price than the previous year, up 8.4% for houses and 9.6% for condos.

SF Bay Area real estate is always a blend of competition and cooperation. Buyers and sellers negotiate, each vying for the best outcome, yet the ultimate goal remains to reach a mutually beneficial agreement, leaving both parties satisfied and the buyer with a home they cherish.

As always, we're here to guide you through the ups and downs of the market to make thoughtful, personal real estate decisions. If you have any questions about SF Bay Area real estate or know someone who does, don't hesitate to reach out. We're eager to assist and appreciate your referrals! Get in touch with us here.

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