Considering a Home Purchase in the SF Bay Area? Here's Why the Second Half of 2024 Might Be Your Time

The past year has been challenging for homebuyers, especially in the competitive SF Bay Area market. If you started your home search only to put it on hold due to market difficulties, you’re not alone. A recent Bright MLS study highlighted some of the top reasons buyers paused their searches in late 2023 and early 2024:

• Couldn’t find anything in their price range
• Didn’t have successful offers or faced tough competition
• Couldn't find the right home

If these reasons resonate with you, here’s some good news: the housing market is transitioning in the second half of 2024. Here are four reasons why this might be the perfect time to resume your search in the SF Bay Area.

1. Increasing Supply of Homes for Sale

A significant shift this year is the increasing inventory of homes for sale. Data from the National Association of Realtors (NAR) shows a clear upward trend in the months' supply of existing homes. This increase means a better chance of finding a home that fits your needs and preferences. If finding the right home was your main challenge, this growing supply is a big relief.

2. More New Home Construction

Another positive development is the rise in new home construction. Builders are focusing on increasing the supply of newly built homes, particularly smaller, more affordable ones. This helps address the long-standing issue of housing undersupply and provides more options that might fit your budget.

According to Census and NAR data, one in three homes on the market is now newly built. If you haven't considered newly built homes before, now is a good time to explore this option. Some builders are even offering incentives like mortgage rate buy-downs to make home buying more affordable.

3. Less Buyer Competition

With mortgage rates around 7%, buyer demand isn’t as intense as it once was. Combined with the increased housing supply, you have a better chance of avoiding fierce bidding wars. Danielle Hale, Chief Economist at Realtor.com, notes:

“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This creates a unique opportunity to find a home with less stress and potentially better pricing.

4. Moderating Home Prices

Home prices in the SF Bay Area are showing signs of moderation, a welcome change after years of rapid appreciation. This moderation is due to the growing supply and easing demand, leading to a slower pace of price increases.

The average forecast for home price appreciation in 2024 is around 3% to 5%, aligning more closely with historical norms. This means you’re less likely to face the steep price hikes seen in recent years.

The Opportunity in Front of You

If you’re ready and able to buy, the second half of 2024 could be easier to navigate. While challenges remain, some of the biggest hurdles are easing.

However, waiting could bring new risks. As more buyers recognize these market shifts, competition may increase. Additionally, if mortgage rates drop as forecasted, more buyers will flood back into the market. Acting now allows you to take advantage of current conditions and stay ahead of other potential buyers.

Bottom Line

If you’ve put your dream of homeownership on hold, now might be the perfect time to jump back in. Connect with me to explore the opportunities available in the SF Bay Area market today.

Roh

(415) 627-8583 text / cell