Report Highlights

■ The median house sales price in Q2 2024 was essentially unchanged from Q2 2023.

■ The number of new listings coming on market in Q2 was up 28% year over year, and the number of homes for sale on July 1st soared 65%. Substantial increases in inventory will typically begin to cool the market and moderate home price appreciation if there is not a commensurate rise in sales activity.
■ Q2 home sales dropped 8% year over year, while home sales of $3 million+ rose 12%: The most affluent households have been playing an outsized role in the housing market since late 2023 (when financial markets began their rebound).
■ The average home sale closed for 3% over list price in Q2 2024, while average days on market dropped to its lowest reading in 2 years.
■ The number of price reductions has been rapidly climbing year over year, an indication of some sellers having to readjust expectations regarding what buyers are willing to pay.

As of early July, mortgage rates continue to hover around 7%, though hopes remain for at least one reduction in the Fed's benchmark rate in 2024. Stock markets have sustained their extraordinary rise. The homeowner's insurance situation remains challenging, with policies often difficult to locate and increasingly expensive. And the latest Census estimates revealed the Bay Area is growing older, with fewer children and a rapidly rising number of residents aged 65+.