San Francisco Real Estate
August 2024 Report
Mid-Summer Market Conditions
As of August 8th, mortgage rates had declined to their lowest point in over a year, while financial
markets were experiencing very substantial volatility. Most analysts believe the Fed will finally
begin to drop their benchmark rate in September (pending a positive inflation report in mid-
August). Lower interest rates, of course, have considerable effect on the cost of homeownership
for those financing their purchase, and a sustained decline would almost certainly spark
increased market activity – not only of buyers, but potentially of sellers who held off listing their
homes in the past 2 years due to the “mortgage lock-in” effect. Much depends on the scale of
any decline in rates – as well as possible changes in other economic conditions – through the
end of the year.
Following the typical seasonal trend, the market cooled in summer from what is usually its most
heated selling season in spring. New-listing and sales activity slowed, overbidding declined, and
homes took longer to go into contract. The 3-month-rolling median house sales price often dips
in summer after peaking in spring (due to a number of factors) but it remains higher year-over-
year – as is the median condo sales price after a July jump. The market usually sees a dramatic
rebound in new listings in September to fuel the autumn selling season, but August may see an
“unseasonal” burst of sales activity if the decline in interest rates continues in coming weeks.
Finding comprehensive and affordable homeowners’ insurance remains challenging: According
to the CA Association of Realtors, nearly 7 percent of recent real estate transactions statewide
fell out of escrow due to insurance issues, but noted that “The state's largest insurance
regulatory reform in 30 years is set to go into effect by the end of this year.” Hopefully, this will
result in substantial improvement to a very difficult situation in many of our markets.
