Bay Area Real Estate Market Update: July 2024 - Where Are the Buyers?

Bay Area Real Estate Market Update: July 2024 - Where Are the Buyers?

  • Spencer Hsu
  • 07/3/24

If you're considering buying or selling a home in the Bay Area this July, you've probably heard mixed messages about the market trends. Spencer Sue, a local real estate expert, provides a comprehensive update on the current market dynamics, shedding light on the nuances of the Bay Area real estate scene.

Key Market Trends

  1. Slight Price Increases Across the Board:

    • The median home prices in the Bay Area have seen a modest increase from May to June, from $1.365 million to $1.375 million, marking less than a 1% rise.
    • However, the trends vary by county, with some counties experiencing declines.
  2. Stock Market and Interest Rates:

    • The S&P 500 has surged by 22% over the past year, with a 3.63% increase in the last month alone.
    • Mortgage interest rates have slightly declined from 7% to 6.86%, providing a minor relief to buyers.
  3. Record Travel and Decreased Buyer Activity:

    • A record number of people are traveling this summer, leading to a noticeable drop in buyer activity.
    • Popular travel destinations include Europe and Japan, with favorable exchange rates boosting overseas travel.
  4. Supply and Demand Dynamics:

    • Despite a healthy supply of homes, demand has dipped due to summer vacations.
    • June saw higher new listings compared to last year, although still lower than the peak years of 2021 and 2022.

County-Specific Insights

  • Santa Clara County:

    • Median prices dropped by 2% from May to June.
    • The sales-to-list price ratio remains high at 106%, indicating that homes are still selling above their list prices despite the decline.
  • San Mateo County:

    • Experienced a similar trend with prices dropping in June after a strong May.
  • Alameda County:

    • Remained relatively stable with a slight increase in June.
  • Contra Costa County:

    • Slightly pulled back in June, maintaining overall consistency.
  • San Francisco:

    • Contrary to the general trend, San Francisco saw an increase in median prices in June, driven mainly by the condo market.

Single Family Homes vs. Condos and Townhomes

  • Single Family Homes:

    • All counties experienced a decline in single-family home prices.
    • The median price for single-family homes in Santa Clara County dropped to $1.95 million from $2.038 million.
  • Condos and Townhomes:

    • Condos saw significant increases, reflecting a shift in buyer preferences towards more affordable housing options.
    • The median price for condos in Santa Clara County is less than half of single-family homes, at $827,000.

What This Means for Buyers and Sellers

  • Buyers:

    • With fewer active buyers due to travel, this summer might be an opportune time to make offers and secure homes with less competition.
    • Interest rates are slightly lower, providing a marginally better financing environment.
  • Sellers:

    • Sellers need to adjust their expectations. The record highs seen in the spring are unlikely to be matched.
    • The market remains strong but with more realistic pricing reflecting the current conditions.

In summary, the Bay Area real estate market is experiencing a mix of stability and slight declines, influenced by seasonal travel and shifting buyer preferences. Whether you’re buying or selling, staying informed and working with a knowledgeable real estate professional like Spencer Sue can help you navigate this evolving market.

For personalized advice and to develop a game plan, contact Spencer Sue and his team, who have helped over 250 people with their moves in the past five years. Stay tuned for more updates as the market progresses through the summer and into the fall.

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