Inventory! Inventory! It is all about Inventory in Noe Valley SF at the moment. The issue is on the mind of every person considering a purchase is this highly sought after neighborhood perfectly situated above the excitement of the Mission, an easy MUNI light rail ride away from downtown, and a relatively quick drive down the peninsula to Silicon Valley. This used to be a sleepy neighborhood on the outskirts of all that was happening in San Francisco proper. Now it is a place in and of itself with great restaurants and beautiful homes with some striking views to boot.
Absorption Rate is a great way to get a quick gauge of what interest levels are in any given neighborhood. Let’s take a look at the absorption rate for Noe in February 2014.
Noe Valley SF Absorption Rate
ACTIVE In Escrow Sold in Past 6 Months
3 6 64!
These are some tough stats for purchasers. There are currently 3 single family homes for sale with 6 houses already in escrow. On average 10 houses are selling a month in Noe Valley. There is only about a weeks worth of inventory on the market currently; not nearly enough to satisfy demand.
It is early in the new year and the expectation is more homes will come on the market soon. In speaking with other realtors and vendors working in the area properties are certainly being prepared to be sold in Noe Valley.
As a buyer the best thing to do to be in a position to compete is be prepared.
1. Find a reputable mortgage broker/direct lender in the area and make sure they have all the paperwork needed to write a stunning pre-approval letter. Every listing agent worth their salt will call your mortgage broker to get a sense of if you are capable of closing the deal. The mortgage broker will not divulge your information of course, but his/her reputation is on the line, so if he doesn’t know who you are financially he will be less willing to give you a glowing recommendation.
2. Find a realtor who is knowledgeable and has a good sense of the local market. When you have committed to a good realtor and they understand what you are looking for, which means you have to know what you are looking for, they may be able to get you in early on great properties. The realtor community actually doing business in Noe Valley is small and information about homes not yet on the market gets around. But realtors don’t want ask for favors from other realtors when they don’t even know if their buyer is loyal, knowledgeable about the market, or capable of closing the deal. Frank discussion is the key, ask every question, and see the market for what it is, very competitive. I have brought clients to homes while they were still under construction or before the painting and staging has been done. Sometimes sellers would rather sell before they paint and stage and would be willing to make a deal before they go through the hassle.
3. Go out on Sunday and see every house in the area that comes even close to fitting your criteria. Your realtor has seen dozens of properties every week for years and years in this exact area, you will be able to have a better discussion once you have seen the available properties.