As summer heats up, so does the Bay Area real estate market. If you're thinking about buying or selling a home this season, you might be curious about the current trends and what to expect in the coming months. In this blog post, we'll break down the key points from Spencer Sue's latest market update video to keep you informed and help you make the best decisions for your real estate goals.
Santa Clara County: A Balanced Market
Santa Clara County's real estate market for single-family homes, condos, and townhomes closed at the end of May with a median price of $1.7 million. This leveling off is consistent with the patterns seen earlier in the year. Spencer forecasts that June numbers will likely be similar or see a slight decline, which is typical for this time of year.
For buyers, this means that the competitive market from April and May might ease a bit, offering a window of opportunity to find a home at a stable price. If you're a buyer struggling to find the right home, consider expanding your search parameters, increasing your budget, or looking at different types of properties.
New Listings: An Uptick in Availability
One significant trend is the increase in new listings. May 2024 saw a substantial rise in new listings compared to the previous year, with 235 more homes coming on the market. This surge even surpassed the numbers from May 2022 and was close to 2021 levels. While June typically sees a slight dip in new listings, the overall increase in May suggests more options for buyers moving forward.
County Comparisons: Performance Varies
Let's take a look at how other counties in the Bay Area are performing:
- San Mateo County: This county saw a significant rise in median home prices, reaching $1.85 million in May. It outperformed Santa Clara County, which previously led in price gains.
- San Francisco County: Prices have remained flat, hovering around $1.4 million for several months. This stability contrasts with the fluctuations seen in other counties.
- Alameda County: The median home price continued to rise, reaching $1.25 million in May, up 2% from April.
- Contra Costa County: This county also experienced a slight increase in prices, maintaining its steady performance.
Market Dynamics: Speed and Stability
Homes in the Bay Area are selling quickly. In Contra Costa County, the median time on the market is 10 days, while Santa Clara County sees homes sell even faster, with a median of 8 days. San Mateo County averages 9 days, and San Francisco, known for its longer condo market, still has a median time of just 16 days.
Stock Market and Mortgage Rates
The stock market saw a modest increase of about 3% in June, contributing to a stable economic environment. More importantly, mortgage rates have decreased by about 2% since the beginning of May, making homes more affordable for buyers. With good credit, you can currently secure rates between 6.5% and 6.75% for a 30-year fixed mortgage, better than the average rates reported.
What This Means for You
Whether you're buying, selling, or investing, the current market trends suggest several key points:
- Buyers: Now might be a good time to act, especially with the increase in new listings and the slight dip in competition. Lower mortgage rates also enhance your purchasing power.
- Sellers: Consider the market dynamics carefully. While prices have risen, the increase in new listings means more competition. Evaluate whether to sell now or wait for potentially better conditions in the fall.
If you need personalized advice or assistance with your real estate goals, Spencer and his team have extensive experience helping families navigate the Bay Area market. Reach out to schedule a strategy call and plan your next steps effectively.
Contact Spencer Sue: 48547 4590
Stay informed, stay prepared, and make the most of the current real estate market trends to achieve your home buying or selling goals.