Real estate (and other markets) can turn on a dime. Case in point: 2020.
What's happening on the ground between buyers and sellers sometimes takes months to percolate up to the headlines — like this recent report by the SF Chronicle on which neighborhoods San Franciscans left in the first 9 months of the pandemic.
Interesting, but old news.
Down in the real estate trenches, my team and colleagues are all seeing the same thing: A tipping point in recovery. Big upward swings in pending sales and general buyer interest.
The latest data show the same. In Q1 2021, the percent of listings accepting an offer hit a nearly 2-year high in condos and a 4-year high in houses. Luxury SF condo sales ($2 million+) are up 39% year-over-year.
That’s not to say it’s a seller’s market downtown. I'm not crazy. Relative bargains abound for buyers, and many sellers are taking a haircut.
But my buyer clients are looking to get in sooner than later, while the gettin's still good.
The current housing frenzy may seem bound to fizzle... but what if it doesn't?
Not all bubbles burst, and this isn't a bubble anyway, according to NAR Chief Economist Lawrence Yun: "It is simply a lack of supply."
(Further reading: The Dispiriting Housing Boom - AXIOS)
What if housing prices keep going up? What if the shortage continues?
Construction, material and labor costs, plus city planning limitations, deter home-building in SF. Would-be sellers don’t sell, because they don’t know where and what to buy next. Will any of this change substantially any time soon?
You may not want to compete now, but today might seem a relative bargain looking back a year from now. There's no guarantee of a discount or a smoother ride for those who wait.
I don't know what will happen. Prices could rise, fall or stay flat.
But as you've heard here before, no one perfectly times the market, except by accident. Real estate decisions are best made on YOUR reality — your goals, budget and timeline — not on trying to read the tea leaves.
So, if you're a first time buyer, or a homeowner wanting a new home or location, and those stars align... what are you waiting for?
For more detailed charts and market analysis, head over to our blog. You can read the April 2021 Market Update here.
As always, please don't hesitate to reach out with any real estate-related questions. We are happy to help you and anyone you send our way!
Warmly,
Also featured in our April 16th, 2021 newsletter:
New York Times: Reverse Migration: Moving to Cities While Others Flee
Eater SF: Mr. Digby's Cocktail Bar Opens in Noe Valley
SF Chronicle: SF Reopening: Here's What Can Resume in the City on Thursday
And recent blogs right here on suitable-jaguar-dev.10web.cloud:
The April 2021 Market Update for San Francisco real estate
Get Your Home in Selling Shape With Compass Concierge Services
Meditations on Home Organization: Decisions, Decisions, a guest blog by professional organizer Sarah Grierson-Dale
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