February 2024 San Francisco Real Estate Market Report
Welcome to your February 2024 Market Report. With a new year, and a new month comes a very, very new real estate market.
Gone are the days of last year when it seemed like the buyers held all the cards. The landscape has shifted dramatically, presenting both challenges and opportunities for those navigating the market.
Throughout the previous year, the market favored buyers with minimal competition, resulting in lower prices, extended days on the market, and a need for sellers to employ various strategies to attract potential buyers. However, with interest rates rising and fluctuations in the stock market, the dynamic has evolved. I found myself urging buyers to seize the moment, emphasizing that while interest rates may fluctuate, the purchase price of a home remains a critical factor.
The Market Today
This is what I am seeing in the San Francisco market right now:
Open house attendance has surged.
New listings hitting the market are on the rise.
Pre-market listings, known as "coming soon" listings, are becoming more prevalent.
The number of homes entering into contract has seen a notable increase.
Days on the market have plummeted.
Multiple offers on properties have become commonplace.
Inventory remains relatively low, a trend that seems unlikely to change.
The number of buyers I am representing has gone up as well as the number of sellers.
If you are a buyer right now, you need to be ready to act fast.
Anecdotal Evidence
Let me share a couple of recent experiences:
Representing a seller of a condo:
I listed a condo in Noe Valley in January—a 2-bed, 1-bath unit with a tandem parking spot and a private deck. Priced at $1,295,000, the response was immediate:Thursday: Listing goes live.
Friday: One-hour showing.
Saturday: Two-hour open house.
Received one offer.
Sunday: Another open house, another offer.
Closed escrow in just 21 days, selling for over $1,700,000.
Representing a buyer.
Educating my client on the market was the first step. With interest rates on the decline, I anticipated heightened competition reminiscent of 2017. After securing pre-approval and conducting thorough market research, they swiftly made their move:Sunday: Fell in love with a condo.
By Sunday night: Our offer, along with another, was in the hands of the listing agent.
Graphs
Here are a couple of graphs illustrating the market trends:
In the News
Intriguing developments in the housing landscape include proposals to transform spaces like a parking garage in Bernal Heights into homes for seniors and concerns from residents in Marina and Cow Hollow about potential transformations in their neighborhoods due to the city's housing push.
“In an effort to meet state mandated housing goals — the city is on the hook to increase capacity to allow for 82,000 units between now and 2031 — San Francisco planners have reimagined the city’s zoning map to allow for taller and denser buildings along transit corridors in neighborhoods that have not produced much housing in the past 50 years…..
While it’s unlikely that much development would occur any time soon on bustling Chestnut — there is just one proposal for a 49-unit development at a former Wells Fargo bank branch and surface parking lot”
One notable project is a 24-unit condo building approved for a parking lot next to a historic building in Pacific Heights, highlighting ongoing debates about development and its impacts.
As we navigate this evolving real estate terrain, it's essential to stay informed and agile in seizing opportunities as they arise.
