The theme of November is: Let the game of chicken begin!
We’ve seen more inventory since the fall selling season began than we have in several years in the city, with the excellent properties still moving at a record pace, and the just decent properties taking longer to sell.
What happens now to the fully respectable but possibly not excellent properties is a game of who will blink first-- the buyers or the sellers. Will the sellers reduce their price, pull it from the market and re-list in spring, just rent it as every seller who doesn’t have to sell threatens to do, or employ the new trick du jour of dramatically dropping the price in order to inspire hopefully a new round of multiple bids?
The latest trick du jour seems to be the most successful, thus most popular tactic used to move properties that previously sold in a 2 week period. A dramatic price reduction (often below what the seller will actually take) is the hook to get fence-sitting buyers off their wait and see morals and actually take a stab at writing an offer. Once that hardest part, putting pen to paper so to speak, is done it’s just a matter of counters back and forth before we see who is going to do the blinking. Sometimes it’s the seller, often times it’s the buyer, and many times that is determined by how many buyers are enticed off the fence.
As we move into the final months of the year, look for more price reductions, far fewer listings, and a lot of withdrawals of properties from the market. Those withdrawn may be re-listed in the new year, but just as likely could be lost to the vast rental pool and disappear for a year or so.
I still maintain this is an excellent time to shop for a property, with the buyers bold enough to actually write an offer (below asking if the property warrants it) being the most successful. Come the new year, it remains to be seen if the steady drum roll of property appreciation will continue, but if history serves then spring will likely see a new round of price valuations hitting new highs.
I hope to get a chance to connect in person with more than a few of you during the holiday season!
Dining at Lazy Bear is an adventure. You buy a ticket. You don’t make a reservation. Instead of a traditional menu, A Field Guide awaits you at your seat. But rather than a rustic camping adventure the restaurant’s name may connote, you have purchased a ticket to ride on a communal dining adventure that is so fresh, so innovative, and so very San Francisco. Continue reading
As we begin the last quarter of the year, change is in the air!
First, a surge of new listings hit the market last month -- there's more inventory in San Francisco now than there's been at any time this year. Just over 40% of those properties for sale are priced under $1M (on par with Zillow's recent valuation of homes across the city -- see how your neighborhood stacks up). Certainly buyer demand is persisting, however competition for any given property is generally letting up... for now. The consensus among forecasters is that prices in the Bay Area will rise through 2016 with regional employment playing a critical role.
Second, there seems to be a shift in buyer demand as higher priced homes linger and take price reductions while relatively more affordable ones attract interest. The median sales price of properties in SF fell slightly last month to $1,097,000 and the number sold is down dramatically year-over-year. To further this point, the generally less expensive East Bay, for example, is experiencing an increase in number of sales from last year, and median prices in some cities -- like Berkeley -- continue to climb. [Those in SF's ultra-high-end market still have plenty to choose from including these 3 Most Expensive.]
From now thru the end of the year -- before the Spring 2016 selling season begins -- should prove an opportune time for prospective buyers to make a move, and it may well be the best time to borrow money in recorded history. If you'd like expert advice on buying, selling or moving up, please don't hesitate to reach out to me at (415) 312-1616 or Meredith@OpeningDoors.me.