Vivre Real Estate February 25, 2023
When San Francisco’s median sale-to-list price ratio dipped below 100% in December, the SF Chronicle raised the alarm: The Bay Area housing market is flashing a key warning sign
(In most US markets, it's common for homes to sell at or under list price. Not so common here in the SF Bay Area, where overbidding is the norm.)
However, what we have seen since the beginning of the year is a very different story.
Desirable homes in most San Francisco neighborhoods are selling at a rapid clip with the usual overbidding and non-contingent offers. We have a severe lack of inventory for sale (save for larger building condos in the downtown core still recovering from the change to remote work and other pandemic related issues—this recent episode of NYT’s The Daily is worth a listen).
What's clear is there is a lot of pent-up homebuyer demand from the second half of 2022. Given the chance—in the form of good economic news, or a home that’s simply too good to pass up—buyers will jump at the opportunity.
That’s what happened in January when inflation news was positive. Interest rates fell, stock prices rose, and buyer activity surged. Whether or not the busy spring selling season fully materializes this year hinges on these factors.
Sometimes, it’s frustrating to see such a disconnect between the news and our reality in the day-to-day market. Maybe more would-be home sellers would take the leap if they saw what we are seeing. Buyers are hungry for good houses and condos.
And, of course, it’s not all rosy. San Francisco does seem to be at a tipping point with some real institutional issues to work through.
For now, buyers and sellers on the fence would be wise to consult an advisor early, understand your options, and decide if it's the right time to make a move toward your long-term goals.
As always, we are here to help! Please don't hesitate to reach out with real estate questions. We are happy to assist you and anyone you send our way.
The Vivre Real Estate team
Sumac’s Red Lentil Salad is my go-to lunch salad in the city. It’s DELICIOUS, vegetarian (you won’t miss the meat, I promise), and super filling. I know what you’re thinking… "What about Souvla and Blue Barn?!" Just trust me on this one.
This weekend are the final performances of Clyde's at the Berkeley Rep. I LOVED this! (Tickets & availability here.)
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