San Francisco, California Real Estate Cools Slightly by Blanche Evans
Realtors in San Francisco say home prices are rising even while inventory takes a little longer to sell than in the recent past. "Wow. Inventory is rising and sitting!," says Realtor James Kastner. "I saw several properties on broker's tour that have been on the market a few weeks -- even a few price reductions. Inventory tends to surge after a holiday weekend -- and drop before. Remember that we have Labor Day coming." Kastner explains, "While San Francisco always tends to favor sellers, the past weeks have seen 'buyers' fatigue.' We are seeing just as strong offers as ever, but with fewer offers being written. Indicative of a decline? Not yet! The competition appears to not be as fierce in terms of number of offers -- but just as heated in terms of price. Advice: Never avoid writing an offer just because you assume it will go way over asking price. That's what your Realtor is there for, right? Not only to 'advise' you on your offering price -- but to help you write your offer. We may advise you that it will go to a certain price point - but your comfort level is the most important. Write the offer even if it is contrary to the opinion of your Realtor! You never know what may happen. A 'market' is a beautiful thing -- it can control itself -- even though it may seem out of control at times. Be a part of it. It is living and breathing." Advises Realtor Jeffrey Tong, "Prices are still increasing, however there are no longer 20 offers on each house -- more like two. Although I don't believe the amount of buyer interest has waned, it appears many are just pausing to see what happens to the market." He explains, "Appraisers believe that the real estate market is due for a correction. The uncertain question is when and how much? But any correction will be tempered by the following facts: The San Francisco Bay Area is home to the nation's top universities and medical centers (UC Berkeley, Stanford, UCSF), a world-class biotech industry, is adjacent to a world-class wine-producing area (the Napa valley), and is a major tourist destination, among others. We are also surrounded by the Pacific Ocean and the Bay. Having said that, the real estate market is influenced by numerous factors: including availability, mortgage rates, demand, and overall economy. My recommendation is to assess your situation carefully, then take advantage of whatever opportunities you might have today, because you may not have another chance tomorrow!" "The market is still hot, but there are not as many offers per property in some areas and price range," agrees Realtor Elta Anderson. "I'm finding more properties are coming on the market. With more properties on the market to bid on, there are fewer buyers per property." |
