NAVIGATING CHANGING TIDES
As we look toward the end of the autumn season, the real estate landscape is reflecting the broader world stage: a mix of global conflicts, fluctuating stock markets, and notably, the highest interest rate hike in more than two decades. This scenario paints a complex picture for both potential buyers, who might be reconsidering their plans, and sellers, who are weighing the benefits of holding onto their current loan terms.
Surprisingly, early November brought a triple-twist: the release of the October jobs report, a strategic pause in interest rate hikes by the Fed, and the Treasury Department’s new bond sales guidelines. These developments led to a rebound in the stock markets and a significant drop in interest rates.
But what does this mean for the housing market as we approach the holiday season, which is typically marked by a slowdown? This period of economic and political volatility leaves us in a state of anticipation about the future. However, there is hope that interest rates might stabilize, boosting consumer confidence and potentially improving housing affordability and the decision-making process for homeowners considering a sale.
Even amidst the expected holiday lull, well-positioned homes (those that are appealing, well-prepared, and rightly priced) might still attract multiple offers. There’s an active pool of qualified buyers out there, some with financing and others ready to make all-cash purchases. For the astute buyer, this period might offer a golden opportunity: less competition and more room to negotiate.
In these unpredictable times, staying informed and adaptable is key. Whether you’re contemplating buying or selling, the current market landscape offers unique opportunities and challenges. Let’s explore these together, understanding how these trends might influence your real estate decisions. Salma & Company is at your service!
DIVING INTO THE SAN FRANCISCO CONDO MARKET:
PRIME TIME IS NOW
The fall selling season in San Francisco’s condo market didn’t quite hit the mark this year. We’ve observed longer days on the market for listings, a surge in price reductions, and closing sale prices that are notably lower than they would have been a year or two ago. This trend is partly due to the higher interest rates we’re experiencing.
As we transition into holiday mode, an interesting shift is occurring. Many buyers, initially deterred by higher interest rates, opted out earlier in the year; now, as we enter the holiday selling season, even more potential buyers will be focusing on their holiday plans rather than house hunting. This creates a unique window of opportunity.
There’s an impressive inventory of condos still on the market, undeservedly lacking in activity. These properties boast attractive features: excellent floor plans, multiple bedrooms, prime locations. And the best part? There are real deals to be found. If you’re eyeing the condo market and thinking of pausing your search until the new year, it might be time to rethink your strategy. The current market conditions have positioned buyers in a place of advantage – you could say it’s a market where buyers reign supreme.
In short, the end of the year could be the perfect moment to make your move in the San Francisco condo market. With less competition and motivated sellers, you might just find the deal you’ve been waiting for.
OCTOBER 2023 REAL ESTATE TRENDS IN SAN FRANCISCO COUNTY:
AN IN-DEPTH ANALYSIS
San Francisco County’s real estate market in October 2023 has revealed some distinct trends. Let’s dive into the data specific to this period:
In San Francisco County, new listings for single-family homes saw a 1.6% decrease (239 new listings in October 2023 vs. 243 in October 2022), and there was a notable 17.2% reduction for Condo/TIC/Coop properties (313 in October 2023 vs. 378 in October 2022).
Meanwhile, there were varied trends in pending sales; single-family homes in San Francisco increased by 16.9% (228 in October 2023 vs. 195 in October 2022), contrasting with a 4.1% decline in Condo/TIC/Coop properties (212 in October 2023 vs. 221 in October 2022).
For San Francisco County in October 2023, the median sales price for single-family homes decreased by 1.2% to $1,650,000, and Condo/TIC/Coop properties dropped by 1.3% to $1,185,000. This is all while San Francisco experienced a 13.0% increase in inventory for single-family units and a significant 30.8% increase for Condo/TIC/Coop units.
These October 2023 trends highlight the unique dynamics within San Francisco County’s real estate market, offering insights for buyers and sellers navigating this specific area.