2024 Bay Area Housing Boom

According to the San Francisco Chronicle, the Bay Area real estate market showed a notable uptick in 2024, with home sales rebounding after two years of declines. This year, the region achieved about 90% of its pre-pandemic home sales volume, outperforming the national rate of 80% compared to 2019.

From January to November, approximately 49,500 homes, including houses and condominiums, were sold across the Bay Area. This represents a nearly 9% increase from the 45,600 sales during the same period in 2023, which had marked the lowest annual total since at least 2012. The increase in activity also extended to new listings, which rose by 14%, climbing from 55,900 to 63,500.

This local resurgence stands in contrast to the national housing market, which has remained relatively flat compared to the previous year. While high mortgage rates have kept some buyers cautious, a slight dip in rates earlier this year encouraged more listings to come onto the market, creating opportunities for eager buyers.

San Francisco, along with Santa Clara and San Mateo counties, experienced its most challenging year for home sales in 2023, largely due to sharply rising mortgage rates and shifting buyer preferences toward suburban cities such as Fremont and Dublin. Additionally, the San Francisco condominium market, which faced significant challenges during the pandemic, contributed to the city’s slower recovery. However, 2024 brought renewed energy to these markets. San Francisco home sales grew by about 11%, making it the second-fastest growing market among Bay Area counties. This year, roughly 4,400 homes were sold in the city, approaching the 4,800 homes sold during the same period in 2019. Furthermore, the number of new listings in San Francisco slightly surpassed pre-pandemic levels, signaling increased seller confidence.

Santa Clara County led the region with an impressive 17% growth in home sales, reflecting its continued status as one of the Bay Area’s most competitive markets. Communities like Belmont and Los Altos Hills saw even more significant surges, with sales climbing as much as 40% compared to last year.

Nationwide, the West Coast housing market has experienced heightened demand since November, with the Bay Area standing out due to its limited inventory and strong competition. Buyers have shown a willingness to act swiftly, often facing multiple offers on well-priced homes that meet key criteria. This competitive landscape underscores the ongoing appeal of the Bay Area, particularly in Silicon Valley, where high-value properties continue to attract interest despite elevated mortgage rates.

The Bay Area’s unique combination of limited housing supply, high demand, and economic resilience suggests that the region’s real estate market will remain dynamic heading into 2025.

source: www.sfchronicle.com