In the last 2 months we've seen the 30-yr fixed drop from nearly 8% down to 6.61%. With the fall in inflation this past year, the Fed is widely expected to begin dropping its benchmark rate. The consensus forecast among analysts is for further declines in mortgage rates.
The Nasdaq is up 35% in the last year; S&P is up 20%. These indexes play a major role in bay area wealth.
The 2023 market was characterized by a flurry of negatives for SF real estate: high interest rates, financial market uncertainty, negative media "doom loop" narratives (that were terribly overdone), social/economic issues pertaining to the downtown district, and a low supply of new listings in most neighborhoods - generally much lower for houses than for condos. Total sales volume plunged, while for many prospective sellers, the motivation to move was reduced by the mortgage lock-in effect.
With interest rates falling, the media coverage turning more positive, several commercial buildings trading hands, AI companies expanding in downtown, and economic conditions and consumer confidence rebounding, the direction is trending positive for San Francisco real estate.
For any questions (specific property, neighborhood, etc), feel free to reply to this e-mail. I'm always happy to help.
Click below to view the full January report.
