According to Mansionglobal.com, the West Coast is experiencing a significant shift in its real estate market, especially in tech-centric cities like San Francisco. In December, inventory surged across many metropolitan areas, offering new opportunities for buyers and presenting challenges for sellers. Here's a closer look at the trends reshaping these markets and what they could mean for you.
San Francisco Leads the Nation in New Listings
According to a recent report by Redfin, San Francisco saw a remarkable 48% increase in new home listings in December compared to the same time last year, the highest jump nationwide.
This influx of inventory is a sharp contrast to the tight housing market we've seen in recent years and signals a potential shift toward more balanced conditions.
Why the Sudden Increase?
Falling mortgage rates last fall spurred many Bay Area homeowners to list their properties, causing a notable uptick in inventory. In some areas, this shift even led to price corrections. For example, home prices in San Francisco and San Jose declined for the first time since early 2023, creating more room for negotiation.
Luxury properties, however, tell a different story. A recent report from Compass highlighted a surge in high-end home sales fueled by the booming tech and AI industries. “The increase in luxury sales in 2024 far outpaced growth in the overall market,” noted Patrick Carlisle, Compass’s chief market analyst.
What This Means for Buyers
For buyers in some of the country’s most competitive and expensive markets, the increase in listings offers a welcome relief. More inventory typically means more options and potentially greater bargaining power.
In December, the U.S. housing market had 4.2 months of supply, marking a balanced market where neither buyers nor sellers have the upper hand. While national new listings rose by 8% year-over-year, pending sales declined slightly, down 1.1%, indicating buyers are becoming more selective in their decisions.
Challenges Persist Despite More Listings
Even with rising inventory, affordability remains a hurdle. Nationwide, home prices increased 6.4% year-over-year in December—the biggest jump since October 2022—pushing the median sale price to $383,750.
Looking Ahead
As we move deeper into 2024, all eyes are on how these trends will evolve. Will mortgage rates stabilize enough to encourage more first-time buyers?
For buyers, this could be the perfect time to explore the market while inventory is up. For sellers, pricing competitively and staging effectively will be key to standing out in this changing landscape.
Thinking of Buying or Selling?
Whether you’re looking to find your dream home or sell in a competitive market, my team and I are here to guide you every step of the way. With a pulse on the latest market trends and expertise in West Coast real estate, we’ll help you make the most informed decisions. Contact us today for a consultation!
Source: Mansionglobal.com
