San Francisco Real Estate - 2024 Year-In-Review

2024 SAN FRANCISCO MARKET RECAP Signs of Stabilization Amid Mixed Signals

MARKET RESILIENCE IN 2024 San Francisco’s housing market saw a

SHIFTING POLITICAL WINDS A notable development in 2024 was a shift towards political moderation. The city’s electorate rejected the more progressive incumbents in favor of centrist candidates, with a moderate mayor-elect already assembling a team of experienced professionals to implement much-needed reforms. This shift could contribute to a renewed sense of stability and business confidence, potentially bolstering the local housing market in the years ahead. INTEREST RATES: A NEW NORMAL SETS IN Mortgage rates remain above 6%—more than twice the levels seen just a few years ago. This has locked many homeowners into their existing properties, reluctant to swap a sub-3% mortgage for one at today’s elevated rates. However, life circumstances—expanding families, job relocations, financial shifts—are prompting movement in the market. While the “lock-in effect” will persist for a significant portion of homeowners, buyers and sellers appear to be adjusting to the reality that 6%+ rates are here to stay, with transactions continuing as the market recalibrates. As 2025 approaches, the question remains: is now the right time to buy or sell? For those considering their next move, a recalibrated market may present opportunities worth exploring.

measured recovery in 2024 with median home and condominium prices posting year-on-year gains, though still trailing the pandemic-era highs. The volume of new listings and sales rose compared to 2023, yet remained well below long-term norms. Notably, buoyed by a resurgent stock market, luxury home sales outperformed the broader market while competitive bidding activity intensified. On average, properties sold more quickly than in the prior year. This suggests growing confidence among buyers. The start of a new year often brings a renewed sense of optimism—one that translates into real estate transactions as individuals and families look to realign their housing needs with broader life changes.

I’d been through a few home purchases and sales in different markets before, but when I asked a connection who they’d recommend working with in SF, it was a short conversation- “Call Brendon.” Throughout our buying journey, Brendon has truly shown himself to be a pro’s pro. If you want experience and great judgment, communicated well, on your side whatever stage of the process you’re in, call Brendon!

A MARKET DEFINED BY CONTRADICTIONS The past year has delivered conflicting

narratives for San Francisco’s real estate sector. The so-called “doom loop” of urban decline, tech layoffs, and persistently high interest rates painted a bleak picture. Yet despite these headwinds, transaction activity across many market segments remained surprisingly robust. While the year began on uncertain footing, the fourth quarter emerged as an inflection point, marking the shift towards a more seller-friendly environment—a trend that could set the tone for 2025.

ERIK S.

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