December 2024: San Francisco Real Estate Insider
Here we are at the end of the first week of December…already! A lot has transpired since my November report; a new mayor, several new supervisors, a host of new local laws and a change (coming) in the White House. And, the most overhyped, “much ado about nothing” local story in recent memory; the tsunami! I guess those expensive warning sirens were on silent mode.
Looking at the local real estate market, I see some seasonal activity as well as opportunistic market movements in the last couple of weeks. From a seasonal perspective; a significant reduction in new inventory and less buyer activity have both kicked in. I am still seeing some buyers looking for the yearend deal as they circulate through listings with 60+ days on the market; but that is the exception.
The yearend buyer movement has been helped by a recent drop in interest rates. In fact, this week, mortgage rates decreased to their lowest level in over a month (6.69%).
Sentiment on what happens with interest rates seems to be cloudy at the moment. Inflation ticked up slightly in October and the November reading will be released on December 11th. Last month it seemed like Powell telegraphed a “definitely reducing” message. Now we see a more clouded “maybe reducing” narrative as we near next week’s announcement (and look for more insight as we head into ‘Q1).
Despite the uncertainty on interest rates, one thing that continues to fuel the local real estate market is the stock market. The markets liked the political “winds of change” and we watched the S&P increase by 5.73% and the NASDAQ jumped by 6.3%; in one month! If you are vested in crypto, you are quite pleased as well.
If you are pondering a yearend purchase as referenced above, there are plenty of opportunities. Here are some different examples of varying city locations with listings showing 60+ days on the market:
In District 7 (Pac Heights, Presidio Heights, Cow Hollow, Marina) there are 17 single family homes available priced from $2.9M to $32M
In District 5 (Cole Valley moving south through Mission Dolores to Glen Park) there are 18 single family homes available priced from $1.298M to $20M.
Do you want a condo? You have choice! In District 9 (Inner mission through greater SOMA) there are a staggering 195 condos available priced from $499k to $12M.
Do you prefer a condo in a northern neighborhood? In District 8 (Russian and Nob Hill’s, North Beach, Telegraph Hill, Van Ness into the Tenderloin) you have 81 condos available priced from $420k to $8M.
As you can see there are opportunities for all buyers as well as investors.
That is it for now. Be thankful and have a great holiday! I'll be back in 2025, but I am always available.
Call or email, anytime.