Seriously, People, this IS San Francisco!
A few facts about our current market:
1. It IS a seller’s market. Inventory is down and prices are up. Buyers are desperately over-bidding homes in attempts to get into a new home before prices and/or interest rates go any higher.
2. Inventory is down 44% according to a recent San Francisco Chronicle article about our real estate market. I had done some calculating on my own and had guesstimated 35-40%. I’m usually pretty good with statistics but inventory is even lower than I calculated.
What these two items mean for HOME SELLERS is that IF you own a home and have been waiting to sell, the time is great right now to do so. Wouldn’t it be nice to list your home for a reasonable price and then get 10-15% more than that? Would you love me even more and be happy to pay a good commission to me?
3. Prices have gone up 8% since last year.
4. Interest rates are at historic lows.
What this means to HOME BUYERS is get off the fence and quit waiting for us to hit bottom! That ship sailed a year or two ago! Affordability is great as prices still haven’t recovered to pre-2008 prices and interest rates allow you to maximize your purchasing power. So DO SO!
No more procrastinating. IF interest rates go up, purchasing power goes down.
Sellers: SELL NOW!
Buyers: BUY NOW!!!
One last thought for each side. Be realistic. Sellers, if you price your $500,000 house at $500,000; there is a good chance you will get somewhere between $530,000 and $570,000. Don’t price it at $600,000 as everyone knows that is too much.
Buyers, please don’t think that $300,000 or $400,000 is going to get you a good house or a nice condo. Gosh, I had someone today all excited about having $50,000 cash to buy a one-bedroom condo. I politely queried if that were a typo and said that it would either be a partial down-payment or the cost of a parking spot.
You are competing against well-qualified buyers with good incomes, high FICOs and 20% or more down. Heck, I had some clients who “won” in a competitive bidding situation because they had 40% down and the other offer “only” had 25% down.
IF you need mortgage advice on how to position yourself to look good to a home-seller, I can refer you to a lender partner of mine.
When you are serious about buying and want someone who will work hard and smart to get you into a home, contact me. I have 3 buyers under contract right now. Guess I might be doing something right? Or my hard work is paying off?
Either way, we are blessed in San Francisco with a beautiful place to call home and opportunities for those who are qualified and desire to call a place home to do so.