Silicon Valley Real Estate Market September 2024

NAR Settlement

The new real estate practice came into full effect at the end of August. Under this change, the seller's agent negotiates their commission with the seller, while the buyer's agent negotiates their commission with the buyer. In our market, it remains common for sellers to cover a portion, if not all, of the buyer's agent commission.

At open houses, buyers are asked to sign in. This sign-in form serves to inform buyers that the host agents (even if they are not the listing agents) represent the sellers. To provide answers beyond what is included in the property brochure, an agency agreement must be established.

For more information, National Association of Realtors provided FAQ at https://www.nar.realtor/the-facts

Interest Rates

On the 18th, the Federal Reserve reduced interest rates by half a point, double the expected decrease. This marks the first rate reduction since 2020, injecting optimism into the market and causing a stock market uptick. This move suggests that inflation is under control, shifting the focus to the rising unemployment rate.

The mortgage market often anticipates the Federal Reserve's actions. The expected rate reduction had already been factored in, and many anticipate an additional two rate drops of 1/4 point each by year-end. Rates are projected to continue decreasing over the next 12 to 24 months, potentially reaching the mid to low 4% range.

        U.S. Annual New-Listing Volume

In 2023, new listings were at 70% of the volume compared to pre-Covid levels. This shortage in supply has contributed to steadily rising prices. It is expected that 2024 will close out with a slightly higher number of new listings compared to 2023. With the recent rate reductions, there is optimism that even more homes will enter the market in 2025.

If you have any questions or require real estate resources, I am here to assist. I am part of a National Professional Network that includes Realtors, Attorneys, CPAs, Financial Advisors, and more.

Below are Annual New-Listing Volume, Stats for Santa Clara and San Mateo counties for last 24 months.  

Stats for other areas are available upon request.