September 2023 Housing Newsletter

Photo Credit: Torehan Sharman

SAN FRANCISCO HOUSING PULSE

Did you catch the latest news on San Francisco’s housing scene? The City’s market is flexing its muscles in surprising ways, despite some shifts in overall sales patterns. Wondering why you’re seeing fewer ‘For Sale’ signs up nowadays? A cocktail of concerns – from rising inflation to interest rates – is in play.

But here’s the twist: while house prices are on the upswing, condos are a goldmine for buyers right now. It’s helpful to think of San Francisco’s housing market the way we do its weather: Sunny in the Mission, chilly in the Outer Richmond. Similarly, house and condo trends differ like day and night, making it essential to have someone decode it all. Salma & Company is here for you!

A quick snapshot from this month: As September kicked off, we spotted 1,142 new and soon-to-arrive listings. Of these, about a third are single-family homes. The rest are a mix of condos, TICs, and co-ops – meaning there are double the options in these property categories for every eager buyer out there. This is why you will often hear us say, when asked about the market, that activity is product-specific and varied, and competition for buyers between houses and condos is different. It is a phenomenal time to be a condo, TIC, or co-op buyer, as there is so much inventory to consider. For our single family home buyers, prepare for tighter competition and more focused inventory, especially considering location options and turnkey offerings.

In a nutshell, San Francisco’s housing world is a dance of many beats, with each area and property type bringing its own rhythm to the mix. If you have questions or want to dive in deep with market stats, please reach out. If you are a buyer or seller looking to transact in 2024, this is a great time to begin the education process and learn more about market dynamics in general, and our services in particular. Let Salma & Company be your real estate journey North Star, shining light on the perfect path for you.

MORTGAGE WATCH

In September 2023, the mortgage landscape saw significant markers. As of September 28, the U.S. weekly average for a 30-year fixed-rate mortgage was 7.31%. Meanwhile, the 15-year fixed-rate mortgage came in at 6.72%.  With these rates in mind, the Federal Reserve’s choice to pause any further interest rate hikes seems relevant. This rate environment has influenced housing demand, leading to a tempered pace in purchases across the board. This effect is noticeable in the home-building sector as well. Builder sentiment, a measure of optimism in the industry, noted a decrease for the first time in several months. Additionally, construction activity levels are currently at a three-year low. This change in pace could influence housing supply in the months to come. For potential home buyers and sellers, this data offers insights into the current market dynamics and suggests the importance of staying informed and considering timing in their decisions.

NEWS YOU CAN USE

More housing supply means rents are dipping around the Bay Area, good news for many residents …. Dreaming of owning your own private island?  We’ve got just the spot for you … More civic-minded philanthropy from MacKenzie Scott, this time generously benefiting a San Francisco affordable housing community organization … Transfer tax and property tax revenue implications color San Francisco’s fiscal picture, once again.

SF REAL ESTATE UNVEILED

Want the inside scoop on San Francisco real estate happenings? Watch our reel for the latest buzz in the city! Follow us on IG as we keep you posted on the latest in SF news.

Video link here: youtube.com/shorts/yh4PhzZKlFA