April 2024: San Francisco Real Estate Insider

Hello and Happy Saturday.

Hopefully you and your family are back or about to return from a well-deserved break. The single family market in San Francisco and Marin continue to be very competitive as traditional spring sellers sit on the sidelines with the <3% mortgage (aka “financial asset”). This lack of sellers has pushed buyers to aggressively compete for available quality homes. I see the imbalance in supply & demand increasing as we continue through Q2. This, in course, will push pricing upwards should turn in to the hottest market since the pandemic boom.

Although interest rates have remained fairly flat since January, anticipation of rate declines in the second half of the year coupled with a red hot stock market and surging crypto market have kept buyer enthusiasm up. This will help fuel the demand.

One of the more unique neighborhood dynamics is in Presidio Terrace. Presidio Terrace – one of nine master- planned residence parks in the City has only 36 homes. These homes rarely trade. In fact, between 2019 and 2023, just four homes traded hands. All of the sudden, in the past approx. six months we’ve seen three sales, two homes about to close and one more coming to market shortly. I don’t see any rhyme or reason; just time for some people to move on. 

Below are some charts that provide an indication into the competitiveness of the single family market:

• Days on the market

• Overbidding

• Average list price to sales price

• Homes / listings accepting an offer

San Francisco higher priced homes ($3M+) are trending upwards after a lackluster 2023. Although this segment is a bit more fickle than the <$3M market, its activity ripples through the lower priced segments. 

The deduction from the data as well as boots on the ground insight is, if you’ve thought about selling over the past year, now can be your time to strike! 

That is it for now. 

Call or email, anytime.