San Francisco has long been a great place for food lovers. Eating local, organic and fresh is easy. We have great produce in stores, wonderful farmers markets and plenty of other options for eating local and fresh--grow your own, get a box delivered to your door, etc. In the last few years, it seems like we have a few dozen new restaurants in the Mission alone. Foodies delight! Our appetite for great food and hip new restaurants seems insatiable.
And so is buyers' appetite for buying homes and condos in San Francisco. For the last few years, fueled by the strong local economy and low interest rates, it seems like buyers in San Francisco are hungry. Really hungry. We have a shortage of homes and condos on the market and this has led to bidding wars and rising prices. With hiring in the technology sector, rental properties are also scarce and rents have also risen dramatically. This leaves buyers hungry and often leads to very aggressive buying behavior.
Last week, clients of mine wrote an offer on a home listed for $1 million. It was well priced and a few homes had sold in November, December and January to support this list price. There was one home that sold for $1,050,000 that was a little nicer. They knew that they were likely to compete against other buyers and submitted a bid well over the asking price and ahead of these recent sales. Their bid of almost $1,090,000 put them in fourth place, out of nine. The received a counter offer (along with the other three) for $1,190,000. They didn't meet the sellers request. We're watching to see what one of their competitors was willing to pay for this home.
Does this blog post look familiar to you? I have written posts about very similar market conditions in the last few years (see Sizzling Hot, The Great Inventory Shortage, January Brings Packed Open Houses and more!). The result: we have a lot of pent up demand and an appetite for nice homes and condos in San Francisco. Lines outside of hip new restaurants, lines outside of open houses. It's a great time to own a restaurant, sell artisinal food and to sell a home.