That sound you hear in San Francisco may be that old familiar ching-ching cash register sound of real estate sales. Recent market activity brings new life and new money to the San Francisco market. Sales across the board have increased dramatically. Multimillion dollar listings in Pacific Heights, Presidio Heights, Noe Valley, Cole Valley are now moving out of the for sale status and into the pending and closed sale status. Properties priced under $1M are receiving multiple offers and selling in one to two weeks in many areas.
Buyers are selecting good, well priced property in desirable neighborhoods. Condominiums are also selling well. The slowdown in multi-unit purchases and TIC units has even seen an uptick in market activity.
What is unusual with this market is that sales usually slow down in late June, July and August.
So maybe we are experiencing a market recovery? In any event, the sales just keep on coming and that means there’s money in circulation and there’s still life in the real estate business. Let’s hope interest rates hold stable. From more detailed informantion on specific areas and general market conditions check out www.thegoldmanreportblog.com .
Market Downswings offer Buying Opportunities. Short Term Sellers take the HIT!
We are all challenged with the market undulations. At times, it feels like we are on a rollercoaster ride and we are helpless to do anything but HANG ON. But for many long term homeowners, the paper loses on the market fluctuations will have little or no effect.
And here is why:
Real Estate always follows trends and market cycles. Market corrections are inevitable. We have been on an upswing market trend in San Francisco since 1999. The good news is that after the market corrects itself, the 50 year market performance statistics reveal that the market eventually recovers and, in time, the prices go even higher than the last high.
FOR FIRST TIME BUYERS: The reduced prices in the market allows for many FIRST TIME BUYERS to afford home ownership. There is also a $8000 first time buyer credit available for those that qualify.
FOR SELLERS: For sellers trading up, what you lose based on past higher values on the sale of your home, you will pick up on the now lower values if you purchase of another home.
SHORT TERM SELLERS take the hit: The people who get hurt in market swings are the short term buyers and sellers. If you are a recent home purchaser and if you are forced to sell because of financial needs, a job transfer to another area and you do NOT replace this property with another property in the area, then you may suffer financially from the downturn.
Some of you remember, as I do, the real estate market in 1980 when interest rates peaked over 18% interest on FHA 30 year Loans. There was recession, and then there was recovery. Then there was the up market swing in the 1980s with yet another correction. In the 1990’s we had the DOT COM boom and then another correction.
The TRUTH about real estate markets is this:
There is ALWAYS a market…good or bad.
There are ALWAYS buyers and sellers.
Any given market is determined by an offer from a willing buyer and acceptance from a willing seller.
Buying opportunities occur when there is less competition and increased inventory.
And such is our present market.
Information about the San Francisco real estate market, foreclosures, and buying opportunities.Who benefits and who gets hurt in a down market?
At the end of October, the Fed cut its overnight rate on loans between banks by 0.5% to 1%.
so… why do the Mortgage rates go up? This article explains why.
Is the Government Bail Out Helping or Hurting the mortgage Industry?
Government bailout uses tax payer money to help stabilize the banks but where does all the money really go?
Is the government bailout money being used by the banks to purchase other banks and monopolize the industry or to stabilize the industry? The Washington Post offers more information.
Some of the banks have now started a “trickledown” effect to pass on this saving to their best customers. But will JOHN Q PUBLIC and the new home buyer ever see the benefits of this easy money?
Two Year Market statistics San Francisco
Here are the numbers as sourced from Broker Metrics for San Francisco area.
This is a 2 Year Comparison from the month of September 2006 to the month of September 2008.
Single Family Homes All SF as of September 2008:
- Median sales price is down 6% from 835,000 in 2006 to 782,500 in 2008
- Months Supply of Inventory is up 42% from 2.7 in 2006 to 3.8 in 2008 (it is down from 4.45 in 2007)
- Days on Market was 34 in 2006, 31 in 2007, and 44 in 2008
Condos All SF as of September 2008
- Median sales price is flat. It was 738,250 in 2006 and is 735,000 in 2008 (it is also flat from 07)
- Months Supply of Inventory is up 30% from 3.6 in 2006 to 4.7 in 2008
- Days on Market was 41 in 2006, 38 in 2007 and is currently 53 for 2008
- October/November 2008 FUTURE Market Trends
- More specific details on YEAR 2007
- Neighborhood sales – 2nd Quarter 2007 to 2008 San Francisco Market statistics
- Neighborhood sales – 1st Quarter 2007 to 1st Quarter 2008
- More specific details on YEAR 2007
- Market Statistics in other Bay Area Counties (Alameda, Contra Costa, Marin, Napa, Sonoma