San Francisco’s housing market has been one of the most expensive in the US for years. However, the latest projections from Zillow suggest that the city’s home prices will rise at one of the slowest rates in the country. Here are some key takeaways from the data:
San Francisco’s housing market has been on a rollercoaster ride in recent years. In the first half of 2018, the average price of a house in San Francisco grew by $205,000, the fastest growth ever recorded. However, the market has cooled down since then. In July 2023, San Francisco home prices were down 9.42% compared to last year, selling for a median price of $1.3M. The median sold price for the entire San Francisco Bay Area in July 2023 was $1,255,000, marking a decrease of 5.2% from the previous month.
According to Zillow’s data, the price of a typical home is projected to rise nationally by 6.5% between July 2023 and July 2024. However, values in the San Francisco metropolitan area, which includes parts of the East Bay, North Bay, and Peninsula, are only expected to increase by 2.5% over the same period. That’s the second-lowest growth among the 100 most-populated metros included in Zillow’s data.
The good news is that Zillow predicts that home prices in San Francisco may drop by 6.5% in the next year. This could relieve new homebuyers and investors, as many have struggled to afford the median-priced home in San Francisco. It is worth considering the long-term potential of investing in San Francisco real estate, despite the current high housing costs. With the right strategy, investing in San Francisco properties can prove to be a profitable decision in the long run.
San Francisco’s housing market is projected to grow slowly in 2024. While this may provide some relief for homebuyers, it is important to consider the long-term potential of investing in San Francisco real estate.