December Market Report: Navigating the Seasonal Shift
As we close out 2024, the Bay Area luxury market is showing its usual seasonal patterns while hinting at some exciting trends for the new year. As we reflect on the year’s successes and look ahead to what’s next, I want to take a moment to wish you and your loved ones a joyful holiday season and a happy, prosperous New Year. Let’s take a closer look at what’s happening right now and what’s on the horizon.
Slower Season, Strategic Opportunities
Late November marked the start of the holiday slowdown, with fewer new listings and slower buyer activity. December is typically the quietest month of the year for contracts and inventory, but this creates unique opportunities for buyers. Properties that have been sitting on the market are prime for negotiation, making it an ideal time to snag a deal before spring competition heats up.
What’s Next for the Market?
Looking ahead to 2025, we’re expecting some positive changes:
Mortgage Rates
Recent declines in interest rates are encouraging, with the 30-year fixed rate dropping to 6.69% (its lowest in a month). Freddie Mac forecasts further improvements in 2025, which could loosen inventory constraints and give buyers more options.
Economic Optimism
The Consumer Confidence Index hit a 7-month high, reflecting stronger buyer sentiment. Combined with job growth and easing inflation, the market feels poised for a busy spring.
San Francisco Market Trends: Resilience Amid Shifts
Median Home Prices
The three-month rolling median price reached $1.65M in November—up 5% year-over-year. This increase reflects the steady demand for high-quality homes, even amid fluctuating interest rates.
YTD Sales Growth
Total sales are up 11% from 2023, driven largely by higher price segments, with homes over $5M showing the biggest percentage gains.
Seasonality
As expected, new listings have hit their annual low, but this trend typically reverses by early spring, when sellers flood the market to capture peak demand.
Market Insights: A Positive Momentum for 2025
While the market faces the typical end-of-year slowdown, the fundamentals remain strong. Experts predict that 2025 will bring a balanced mix of easing mortgage rates, increased inventory, and steady buyer demand. Whether you're planning to buy or sell next year, positioning yourself now will pay off.
If you’d like to explore your options or discuss what these trends mean for your real estate goals, let’s connect. The best opportunities often come to those who are prepared—and I’m here to guide you every step of the way!
Warmly,
Marina
