San Francisco Homes: Easy to Sell, Difficult to Buy
The San Francisco real estate market at the beginning of 2013 is a story of supply and demand…well, little supply and lots of demand. The local market improved in leaps and bounds in 2012, sellers are waking up to the fact that they again have something of value, and buyers have realized they are not alone in trying to purchase San Francisco homes.
The new year is already a few days old, but as far as San Francisco real estate is concerned the year hasn’t started yet. There is practically no new inventory! Using the Noe Valley district of San Francisco as an example there are currently just 10 houses for sale, which in itself is very few. Of those 10 houses for sale in Noe Valley only 2 have been on the market for less than 10 days. That means a vast majority of the homes currently for sale in Noe Valley have been languishing on the market for weeks sometimes months. Citywide there are 150 houses actively on the market, of those only 28 have been on the market less than 10 days….WOW! For condominiums citywide there are 126 currently on the market with just 24 for sale less than 10 days. There is hardly any supply of San Francisco homes.
The other side of the equation is correctly priced homes are flying off the market, and there are simply too few of them. In December 197 single family homes were sold throughout San Francisco with approximately 50% selling in less than 30 days; very very quickly. San Francisco homes are being sold to the most ready, willing, and able buyers. These are buyers who have spoken with a mortgage broker (or direct lender), have a relationship with a knowledgeable realtor, and understand what it is they are looking for.
What this information is indicating, as any home buyer in SF already knows, is that there is extremely little “real” inventory, meaning San Francisco homes priced in a way to attract a ready, willing, and able buyer. Properties for sale over 30 days in San Francisco in the current market are not priced to sell and have a low probability of attracting any offers. Buyers in San Francisco are well educated and usually very knowledgeable about our hyper local market; most often they have seen every property that fits their criteria, sometimes they know more about their neighborhood of interest then even their realtors do.
The best tool for both sellers and buyers is to be as informed as possible. Send me questions about any neighborhood in San Francisco and I’ll give you an in depth analysis of what is really happening in the area and how it relates to San Francisco as a whole.