Attention home shoppers, the housing market appears to be softening. Lending a hand in this softening is an increase in single-family homes and condominiums on the market. All of the double-parked construction and painting trucks we residents have endured lately was the tell-tale sign that the market was picking up. Those trucks are still around, so count on a continuing flow of new properties in the next month.
In the past 2 weeks there has been a slightly noticeable decline in interest in San Francisco's "hot neighborhoods". Or, in other words, new "hot neighborhoods" have emerged, as seen in the continuing popularity for, and over-bidding frenzies in Bernal Heights, Mission/Noe Valley and Potrero Hill. The Inner and Central Sunset have also seen record sales of single family homes.
This opens back up the playing field for those buyers who still say to themselves "I would only buy in.... neighborhood." Case in point: a starter 2 bedroom condo in desirable lower Pacific Heights handed out only 2 disclosure packets before reviewing offers today. With only 1 or 2 other comparable condos also on the market in that area, the fact that the open houses weren't swarming was a mystery.
It is clear that buyers putting in offers this month have more resistance to handing in offers that are excessively over the listing price. It seems as though buyers are more conscious of what type of value is important to them.
The fact that buyers are being more cautious shouldn't suggest that there is a complete cooling of the market. First of all, remember that interest rates are still historically low. Additionally, "hot properties" still exist: currently on the market is a spectacular 2 bedroom flat in Cole Valley. Brand new remodel, fabulous finishes, great light and space, for a mere... $899,000. What's my point? The property is done so well that, even with any parking or location challenges, it is sure to get multiple offers and go far beyond this price. If things are done right - remodels, marketing, staging, pricing - the demand will be there, no matter what the location or what the market is doing.
Have more questions about trends in the housing market? Questions about selling or buying a home? Contact me today for honest, experienced answers.
Amy Blakeley, Realtor®
ablakeley at mcguire.com
(415) 296-2173 Direct