The October 2024 Bay Area real estate market is showing a rebound in home prices despite an increase in inventory. Spencer Sue, an experienced realtor, shares his insights in this market update, breaking down trends by county and offering advice for buyers and sellers navigating the current landscape.
1. Inventory Surge: Opportunities for Buyers
September 2024 saw the highest level of active home listings across the Bay Area, including counties such as Alameda, Contra Costa, Marin, and Santa Clara. If you’ve been waiting for more inventory to hit the market, now is the time. The influx of listings offers buyers more choices, and although sales are slower compared to the busy spring season, homes are still moving relatively quickly, especially those priced attractively.
2. Price Bounce-Back
After a summer decline in home prices (which is a typical seasonal trend), the market has experienced a 3% price rebound, with median home prices rising from $1.122M in August to $1.265M in September. This resurgence suggests a recovery, and further price stabilization is expected in October. However, the market might cool off again as winter approaches, with lower sales prices historically characterizing the season.
3. Days on Market
Homes are spending about two weeks on the market, with more desirable properties still selling within one week. Although this is slower than the spring season, homes are still moving at a reasonable pace, particularly for those ready to act quickly.
4. County Breakdown: Not All Markets Are Equal
- Santa Clara & San Mateo Counties: Prices here have continued to decline slightly, with no significant bounce-back in September.
- Alameda & Contra Costa Counties: These regions have shown a slight rebound, with more affordable prices attracting buyers.
- San Francisco: The city experienced a dramatic price increase, particularly in single-family homes, after a slump in August. Condos, however, remain volatile due to their diverse nature.
- Marin County: Also saw a notable uptick in prices after a period of stagnation.
5. New Listings: Flood of Inventory in Some Counties
September saw a significant influx of new listings, comparable to peak spring levels, particularly in San Francisco and Marin counties. Buyers have more choices than at any point this year, but this means sellers must be strategic about pricing and marketing.
6. Interest Rates & Market Sentiment
Although the Federal Reserve made a rate cut, mortgage rates have not dropped as much as some expected. Rates are still in the low to mid-6% range, with jumbo loans offering better terms for higher-end buyers. Economic uncertainty, upcoming elections, and the general pace of the market might be causing some buyer hesitation.
7. Buyer Strategy
Buyers looking to make a move now have more options and less competition than in the peak seasons. The fall market presents opportunities for negotiations, better terms, and, in some cases, contingent offers. With home prices stabilizing and more inventory available, motivated buyers can take advantage of favorable conditions before the market slows in winter.
8. Seller Strategy
Sellers have a critical window of about one month to list before the market quiets down for the holidays. November sales typically reflect October activity, so listing now can still yield solid results. Waiting until December or January could result in fewer buyers and potentially lower prices.
Conclusion
Whether buying or selling, the current Bay Area market offers unique opportunities. With prices rebounding and inventory increasing, buyers can benefit from more choices, while sellers should act quickly before the market slows in winter. For personalized advice and a tailored strategy, it’s essential to work with an experienced real estate professional to navigate the complexities of the market.
For more information or to discuss your real estate goals, contact Spencer Sue at (408) 547-4590.