Time for another San Francisco real estate market update!
All the news is raging about the 'exodus' from San Francisco. Should San Francisco homeowners be worried? Is this a temporary market shift, or a permanent realignment? Watch the video below, and read on for more.
The trends are undeniable — active inventory of San Francisco homes for sale has shot through the roof in recent weeks — but that doesn't mean it's time to sound the death knell for San Francisco real estate.
So what is happening?
Due to the unique circumstance of the moment, many sellers have changed their 5-year plans into 5-day or RIGHT NOW plans. Many who planned to someday raise a family in the suburbs or retire in the country have decided to do it now instead.
Many of us, yours truly included, are raising our families here in SF. To stay or go is a personal preference based on many factors. Many folks are moving within the city limits as well: trading their current home for a different San Francisco neighborhood or a home style or size that better suits their needs. These decisions are not necessarily pandemic-driven though perhaps pandemic-accelerated.
As boots-on-the-ground real estate agents, this is the overarching trend we are seeing from buyers and sellers all over San Francisco. The pandemic inevitably caused folks to rethink their plans and priorities. That's reflected in current market conditions, but it does not necessarily forebode a long-term or permanent change.
With the landscape of San Francisco real estate in flux, opportunities remain (or even abound) for prospective home buyers and sellers.
The effects of high listing inventory are perhaps obvious for home buyers: there are more listings on the market, which means you have more to choose from. You might even score a deal, working with a great agent who knows how to leverage your position and write a winning offer! (We know a few.) Home buyers also benefit from the crazy rock-bottom mortgage rates out there today, now floating around 3% on average.
For sellers, the effects of high inventory are different, but not all doom and gloom. Depending on your type of property, you may find slightly or significantly more competition from other listings. Condos have seen the highest rise in average on-market time (days on market), whereas single-family homes have seen some rise but less than condos.
The good news for San Francisco home sellers is that their homes' values have not been heavily impacted. Closing prices have had their ups and downs through the years, but the general trend has been up and up. So far, this trend has continued. After all, those lower mortgage rates mean buyers can spend more on their purchase with the same savings and income as before.
Despite the uniqueness of these times and this market, the best course of action is the same as ever: Be true to your own needs and long-term goals. That's the winning recipe for real estate success.
If you, like many sellers, are thinking that now is the time to pack up and head to the country, that's great! Fill out our seller worksheet to tell us more about your situation. Let's talk strategy.
If you, like many buyers, see opportunity in low mortgage rates and high listing inventory, well that's great too. There are lots of opportunities out there for you right now. Tell us more about what you're looking for in our buyer worksheet.
However, if you see the market shifting and you're worried that you've missed the bandwagon, don't fret. City living, particularly in such a unique and fabulous city as San Francisco, will always have a draw. There's a million reasons people love SF, and those reasons will be here long after the pandemic is over.
Whatever your plans, feel free to reach out to discuss your options or chat more about the San Francisco real estate market. We always love to hear from you!
Signing out from the home office,
