GREETINGS:
Hello from Salma & Company! Read on as we take a look at City real estate inventory trends, compare where we are from April 2022 to April 2023, share insider knowledge around jumbo loans via our video of the month, and consider some breaking industry news. Thank you for reading!
WHERE ARE WE NOW? APRIL 2022 VS. 2023
We’ve heard it, and we’re sure you have, too: the local market continues to be impacted by limited inventory on hand. Fewer properties than typically seen at this time of year, fewer transactions, fewer closings. The numbers bear this out, to be sure, but we have been taking a more granular look at the state of things, and invite you to consider a more nuanced perspective than might be highlighted generally in industry trend news.
Yes, April 2023 looks different from April 2022; a total of 233 single family homes hit the market this April in the city, compared to 329 last April, representing a nearly 30% sales decrease year over year. The Condo/TIC/Co-Op market showed an even steeper decline, with only 321 new listings hitting the market in April 2023 (as opposed to 541 in April 2022, or a falling off of about 40%). In terms of transactions, 173 SFH properties closed escrow in April 2023 (down from 257 in April 2022), and 212 Condo/TIC/Co-op properties closed (against 381 in April of the previous year). Looking at the entire City, prices dipped as well from April 2022 to April 2023.
But we prefer to see the forest for the trees. In a market like San Francisco’s, a city full of tiny villages where each neighborhood has its own selling and buying story, it makes sense to take a closer look at each district individually. (Please note we’re talking real estate districts here, not the electoral ones that indicate which Supervisor represents its constituency; link here for a breakdown of the City’s 10 real estate districts and 60+ neighborhoods.) On the City’s north side, for example, the median sales price for SFH was actually on the rise in April 2023, as compared to April 2022: in District 7 (Pacific Heights, the Marina, Presidio Heights), the median SFH sales price increased to $4,760,000 (from $4,100,000 in April 2022), while in District 6 (Hayes Valley, Western Addition, Alamo Square) the median sales price for SFHs climbed to $3,507,500 (from $2,900,000 last year).
The Salma & Company team brings decades of experience in this market, and are here to guide our clients through less than certain times. Inventory is limited, so now’s the time for sellers to market their properties in a dynamic way and to be smart in their price setting, so as to yield multiple competitive offers. We’re at your service; please be in touch for a complimentary consultation regarding your property today.
SALMA & COMPANY VIDEO HIGHLIGHT: A TOOL OF THE RICH
When it comes to financing high-value properties, many people assume that their options are limited to cash payments or traditional mortgage loans. However, for those seeking to acquire properties above the conforming loan limits, a jumbo loan can be a viable option. Jumbo loans offer borrowers a wide range of benefits, including flexible terms and competitive interest rates. [This video highlight offers a closer look at what jumbo loans are], and why they’re an excellent financing tool for those borrowers with excellent credit and high income!
NEWS YOU CAN USE:
Industry watchers at RealTrends are noting a slow and steady increase in new inventory coming to market; will more inventory in May 2023 be a harbinger of things to come for the back half of the year? … Speaking of increased home purchase activity, nationwide numbers are slowly coming up, while the average home loan size is on the decline … The sale of the penthouse apartment at 1960 Broadway, just one of a small handful of pre-War properties of its kind, closed last month, for the largest apartment transaction in the City so far this year, at $11,000,000 … The owner-operators of bicycle tour company Blazing Saddles have put their unique Beach Street combination home and storefront property on the market … The City has released an audit indicating that San Francisco is behind on spending affordable housing funds, while the Board of Supervisors recommends further funding of affordable housing projects from property tax revenues.