As we bring the year to a close, I wanted to share my thoughts on the current San Francisco real estate market and what to expect in 2015.
2014 San Francisco Real Estate Market
As many of you know, the low inventory this year really drove prices higher and became either a barrier to entry for many buyers or it was a complete turn off and buyers decided to wait for the market to change.
If you were/are a seller – this was an ideal market for you! We worked with many of you on the sale of your condos and homes and, for many of you, the purchase of your next home. No two transactions are the same, but we are happy to report that our clients got top dollar for their properties!
2015 San Francisco Real Estate Market
The economy in general is slowly improving; however San Francisco housing is under pressure and will continue to expand as there will be continued, rapid growth, particularly in the tech sector, with high paying jobs and business opportunities. There will be more construction cranes and development will continue at a rapid pace in South Beach and Mission Bay areas.
If you were one of the “turned off” buyers this year, my advice is that if you want to be in the market and buy something, you need to have fortitude and patience. Expect that you may have to pay over the asking price, so look within your price range accordingly. Always try to get a property you like, even if you think your offer may not get accepted. It’s simple and easy for us to write a contract on your behalf and you never know what the sellers motives are, you might just get surprised!
If you can’t compete with active buyers in a certain price range, then lower some of your expectations and try to find other opportunities that will work where you don’t need to compete with many folks. Maybe you buy a fixer and sell in a few years; maybe it’s a “starter” home or condo that could later turn into an investment as you move to purchase your longer-term home or expand your neighborhood selections as today’s developing neighborhood could be tomorrow’s desired neighborhood.
Why is 2015 the right time to sell?
Demand is still at an all time high. There is speculation on what the FED does and how it will affect mortgage loans. However, this will be slow to play out. If rates do go up even a point, it will lower the purchasing power of some buyers effectively lowering sellers’ sales prices.
At the end of the day, having a positive attitude and working closely with your real estate agent should result in a strategy that fits your needs if you are buying or selling. My agents and I are here to help and always willing to chat regarding your specific needs and market conditions. Please feel free to call 415-336-9695 to discuss your 2015 real estate plans!
Have a Very Happy Holiday Season!