SF Market Conditions

 
There have been several articles recently that indicate the San Francisco housing market is a heading to doom: there is a bubble, it will burst and prices will tumble. Is that true? My crystal ball has been broken for a long time.
 
Here’s what I know. The housing market in the Bay Area has been red hot for the last three years. The market continues to be strong, although we are starting to see some variation in strength by neighborhood, by segment and by property.  
Some Examples: 

San Francisco Market Update

 

The San Francisco real estate market, like all other markets, has its ups and downs.  In the long term, our market has been going up steadily for many, many years.  The market was down following the 2008 financial crisis that had a huge impact on the entire economy, the San Francisco real estate market was down from 2007 highs.  And then, starting in 2012, our market took off. Most properties listed for sale received multiple offers with sale prices well over the list price.  That trend has continued into 2016.  Now, in some neighborhoods and for some kinds of property, the market seems to be stabilizing (for example: some lofts in SOMA neighborhood). The charts below are for all of San Francisco. If you would like to know what is happening in your neighborhood or any neighborhood in the city. I can prepare analysis that is custom for you and your questions. 

 

 

 

Properties are still selling quickly in San Francisco neighborhoods. A home or condo is listed for sale and often generates a lot of interest very quickly. The number of days that a place is on the market until it is sold has been declining stedily in the last few years, and it appears to have stabilized. 

 

 

 

The number of homes sold is also down, while demand has remained strong. 

 

 

 

And the fewer listings on the market and subsequently sold, has put pressure on prices.

 

  

 

Demand remains strong because of strong job growth in the region, and lack of production of housing units to meet this demand.  According to economists from the California Association of Realtors, between 2010 and 2015, jobs in the Bay Area incrased by 234,000, while only 30,000 new housing units were added.

I look forward to talking with you about the SF real estate market.

 

Financing and Inspection Conditions are common in a purchase contract.  Depending upon market conditions, some buyers may choose to waive conditions, or depending on the property and its condition, you might wish to add additional ones. Here is an overview: 
 

Is Your Home Really Worth What Zillow* Says It Is?
*Zillow or any other company with an Automatic Valuation Model, that is!
There are many Automatic Valuation Models available on the internet, designed to give instant valuations of property values.  In most cases, there is a big difference between the estimate provided on line and the market value—what a buyer would be willing to pay for a property at any given point in time. These estimates can be high or low.  Sometimes they are off by a...

It probably comes as no surprise to anyone who lives in the Bay Area and has access to local news reports: The real estate market in San Francisco and all over the Bay Area continues to have rising sales prices caused by fierce demand, and multiple buyers bidding on almost every home or condo listed for sale.  Many homes sell significantly over their asking prices and median sales prices continue to rise rapidly. This has been the story for the last several years. What’s different this...

I helped Ben Amyes and Tom Hagan sell their condo in the Mission and this enabled them to move to Woodacre. Here is their story:
 

It Doesn't Get Much Better Than This!
One bedroom/one bath Open floor plan living/dining room Private garden patio Kitchen with stainless appliances, granite counters, glass tile backsplash Large bedroom with ample closet space Custom designed storage in large entry hallway Well managed elevator building Low Monthly HOA fees $371.56 Leased parking in building $325/mo Close to MUNI and corporate shuttle busses Quick walk to Alta Plaza and Lafayette Parks Steps from Fillmore Street restaurants, cafes and boutiques
$679,000

This beautiful, light-filled one bedroom, one bath condo is ideally located a half block from Pacific Heights’ vibrant Fillmore Street, with some of the city’s best restaurants, cafés and boutiques. It is a quick walk to Alta Plaza and Lafayette Parks, close to MUNI and corporate shuttle busses, and it’s easy to get downtown and to points North and South. The combination living and dining rooms with wood floors are adjacent to the kitchen and the private patio.  The kitchen has granite counters, stainless appliances, beautiful gray-stained cabinets and a glass tile backsplash. The bright, spacious bedroom has a large closet. Extra storage is available in the custom-designed unit in the spacious entry hallway. Leased parking in building. Low HOA dues $371.56 per month. Beautiful and close to it all. It doesn’t get much better than this!

Sold
$800,000

 
 

 
Five Essentials for Buying a Home or Condo. Click HERE to read more.

 
Rental prices in San Francisco continue to rise. Demand has continued to increase: SF is a great city and like most major U.S. cities has seen population growth in recent decades and many factors make the city more desirable as a place to live. This plus an increase in local jobs in the city and on the peninsula, better public and private transportation options, etc. has increased the popularity of living in the city.  Supply of new rental units has been stagnant for many years, in my...

Did you miss that surge of new inventory on the San Francisco market this spring? We all did.  Buyers and their agents were hopeful.  Inventory levels remained low. I was surprised to see this chart and realize that we've been waiting for the spring inventory to arrive. For the last few years!
California is facing a crisis with water, too. A few years of below normal rainfall, along with increased demand leaves us with a severe shortage of water.
 
 
 
For many of my years as a real estate...

I heard another agent remark recently that Sellers are always the last to know.  I hadn’t thought about this before, but in many ways, this is true.
In a declining market, sellers are the last to know when the market is soft, demand is down and prices aren’t what they used to be.  That appraisal the seller got 5 years ago when the market was stronger may be off by a hundred thousand dollars. Or more.
Sellers are the last to know when features of their home are not attractive to today’s...

 
abundance of purple cauliflower
 
 
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....

Are you ready to be a buyer in San Francisco?  Here are 5 things to consider as you start the buying process:
1. Be Pre-Approved Getting pre-approved before you start searching for your new home is critical.  It will be a guide to help you determine the kind and price of the property you will be searching for.  Because our market is currently moving quickly, getting pre-approved will enable you to write an offer within hours of seeing a property.  Your offer will not be competitive with...

One question that many Sellers overlook when making the decision about who to hire to represent them in the sale of their home:  Would you ever be willing to represent the buyer as well as me?  And the follow on question: How many times have you reprsented both the buyer and the seller in a transaction?  Representing both the buyer and the seller in the transaction is perfectly legal, and some agents make this a business practice.
You might consider, however, hiring an agent who will not...

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