Bay Area Home Sales Up 19% From Last July, As Prices Remain Strong

According to SiliconValley.com, as we move beyond the summer of 2024, the housing market in the Bay Area continues to show strength, even as the season winds down. With interest rates stabilizing around 6.5%, inventory remaining low, and home prices on the rise, the market is still thriving. Recent data from the California Association of Realtors highlights a remarkable 19.2% increase in sales this July compared to the same period last year, signaling continued momentum.

Why Sales Remain Strong Despite High Interest Rates

A key factor driving the post-summer market is the evolving buyer sentiment toward interest rates. Although rates remain at 6.5%, the downward trend has brought relief to buyers accustomed to higher rates close to 7%. This shift has encouraged both buyers and sellers to engage, leading to significant increases in sales volume across the Bay Area: Alameda County (24.9%), Santa Clara County (30.5%), and San Francisco (34.8%).

Limited Inventory and High Demand Keep Prices Climbing

With inventory still limited and demand remaining high, home prices are continuing their upward trajectory. The median price of a home in the nine-county Bay Area has risen by 3.6% over the past year, reaching $1.3 million. Notable price increases include Alameda County ($1.28 million), Contra Costa County ($916,500), San Mateo County ($2.1 million), and Santa Clara County ($1.88 million). San Francisco County leads with nearly a 10% rise, bringing prices to $1.6 million.
Wealthy Buyers Continue to Drive Bay Area Market

Tech professionals continue to be major players in the Bay Area real estate market, driving fierce competition for single-family homes. 

Impact of New Real Estate Commission Rules

Recently implemented changes to real estate commission rules, which no longer guarantee that sellers will cover buyers' agents' fees, are expected to impact the market. However, the full effects of these changes have yet to be reflected in the latest data.

Source: SiliconValley.com

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