According to Silicon Valley, In 2024, the summer housing market in the Bay Area closely mirrors last year's trends: interest rates remain steady at around 6.5%, inventory continues to be low, and home prices keep rising. However, this summer has seen a significant uptick in real estate activity, with July home sales increasing by 19.2% compared to the same period last year, according to the California Association of Realtors.
The key difference this year is buyers' perception of interest rates. While rates are now similar to last summer's, they are trending downward rather than upward. Last year, a 6.5% interest rate caused concern among buyers, but with rates hovering around 7% in recent months, a 6.5% rate now feels like a relief.
This shift in mindset has brought both buyers and sellers back into the market, leading to sharp increases in sales volume across several Bay Area counties. Despite low inventory, the high demand continues to push prices up. The median home price in the Bay Area rose by 3.6% over the past year, reaching $1.3 million, with San Francisco County seeing a nearly 10% increase to $1.6 million.
Despite high interest rates, Bay Area homes are selling quickly. With the summer market heating up, buyers need to act fast.
How new rules around real estate agent commissions will impact the market remains to be seen. With these changes taking effect recently, their influence on the fall housing market will become clearer in the coming months, according to David Stark, spokesperson for the Bay East Association of Realtors.
Source: SiliconValley.com
