San Francisco August '24 Real Estate Update Ascend RE

Inventory

New listings dipped in July, marking the third month of decreasing new inventory. This is to be expected at this point in the market cycle. In fact, the highest amount of inventory generally hits the market around mid-Spring, picking back up around September at the start of the Fall market. Pending sales have dropped only slightly but remain relatively strong, again we expect the number of sales to slow down in the Summer before ticking up again in September. Listings sold have maintained a steady streak since March of this year, performing much stronger on average than 2023 sales. Total inventory has dropped for the past two months, hitting a low level in comparison to prior years. This tightening of inventory may be indicative of a seller’s market. Months supply is at 2.7 months due to less homes hitting the market but continued sales of available homes. We can expect that the Fall market will experience overbidding and strong buyer competition.

Sales price

Average sale price decreased in July, marking the first drop in value after 6 months of price increases. Again, this is typical Summer housing market behavior expected to improve in the Fall. In welcome news for sellers, properties are selling on average at 4% over their asking price though this number has decreased over the past couple of months in this slower season of real estate. However, between 55%-60% of homes have been selling consistently over asking price, despite overbidding dropping a bit. Typical of the summer season, average price per sqft has lessened by about 4%, expected to bounce back in the Fall.

Days on Market

Days on market have risen slightly over the course of the year, meaning homes are taking a bit longer to sell. In positive news, days on market have stayed the same over the past 4 months.

The Bottom Line

If you’re considering buying a home in the Fall, getting prepared over the next couple of weeks is crucial. The fall market will be here before we know it, and it moves fast and furious. More so with potential interest rate decreases and political campaigns. It’s highly advisable to get a pre-approval secured now. On the flipside, if you’re considering selling this year, there’s no time like the present to get prepared since the market will slow down in early November. If now isn’t the time, Spring 2025 is another optimal moment to strike. Click here for a free consultation to determine the best timeline for you to reach your real estate goals!