The San Francisco real estate market is showing strong signs of recovery and growth as we enter the summer of 2024. Despite the challenges faced in recent years, the city's housing market is demonstrating resilience and a renewed sense of optimism among buyers and sellers alike.
The 3-month-rolling median house sales price in May reached $1,735,000, marking its highest value since mid-2022. This upward trend indicates a growing confidence in the San Francisco real estate market and a willingness among buyers to invest in the city's future. On the other hand, the median condo sales price, at $1,135,500, experienced a slight decline of about 1% year over year.
Year over year, the 2024 year-to-date home sales volume increased by approximately 12% compared to 2023. This growth is a testament to the renewed interest in San Francisco real estate and the city's enduring appeal as a place to live and work. Notably, the luxury home sales segment, consisting of properties priced at $5 million and above, witnessed a remarkable 62% surge, indicating a strong demand for high-end properties in the city.
In May, 82% of house sales and 44% of condo sales sold for over the asking price, highlighting the competitive nature of the San Francisco housing market. House sales, on average, achieved a sales price nearly 13% above the asking price, while condos averaged a sales price about half a percent higher than the asking price. These figures represent the highest percentages observed since mid-2022, signaling a seller's market and the willingness of buyers to engage in bidding wars for desirable properties.
The average days on market for San Francisco real estate listings reached their lowest point in 12 months, further emphasizing the high demand and fast-paced nature of the market. This trend is encouraging for sellers, as it suggests that well-priced and well-presented properties are likely to attract significant interest and sell quickly.
Despite 30-year-loan mortgage rates hovering around 7% in May and early June, many buyers and sellers have come to accept this as the new normal. (In our 20+ years' experience in the local market, SF homebuyers tend to secure ~ 1% lower mortgage rates than the headline national average.)
Interestingly, an estimated 30% to 40% of national homebuyers have been paying all cash, indicating that a significant portion of the market is less affected by fluctuations in interest rates. Additionally, stock markets have once again hit new all-time highs, positively impacting household wealth and potentially fueling further investment in the San Francisco real estate market.
As we move into the summer months, it is not unusual for home listing and sales activity to slow down slightly. However, the overall trends in the San Francisco housing market point towards a continued recovery and growth trajectory. With the city's enduring appeal, strong economic fundamentals, and the resilience of its residents, the San Francisco real estate market is poised for a promising future.
If you're considering buying or selling a home in San Francisco, now is an excellent time to explore your options and consult with our experienced San Francisco real estate agents who can guide you through the process and help you make informed decisions in this complex market.
If you have questions about your options for buying or selling a home in San Francisco, reach out and contact us here. We look forward to speaking with you.
