August 2024: San Francisco Real Estate Insider
Hello and Happy Saturday.
As we enter August, the local market is fairly quiet as vacations rule the month. But, demand is still present and many sellers are holding off until post Labor Day to list their property.
Some of the market easing can be directly related to the current state of interest rates. Buyers are anticipating a cut; sellers expect buyers to be more aggressive and competitive when we see the (expected) cut priced into the market. As Fed Chair Mssr. Powell spoke of confidence and gaining control around inflation at last week’s Federal Reserve meeting, we are already seeing rates move downward. The next inflation report comes out on August 14th; good timing for the beginning of the fall market.
Looking at interest rates and mortgages, the 30 year still gets too much attention from buyers. Many buyers I see in the market will only purchase a property with a 30 year fixed rate loan. Often times, out of curiosity, I ask them how long they intend to own the home until they trade up or move out of the city. The common answer is seven to ten years. Old habits die hard. For reference, this year I’ve not had a single client make a purchase with a 30 year fixed rate loan. All of my buyers either utilized adjustable rate loans or (if available) cash. Don’t overlook an ARM product in the current rate environment.
Here is a quick snapshot of interest rates over the past year. Let’s hope the downward trend continues.
Pondering a move outside of San Francisco? The charts below will show you what county has the most inventory (per price point).
Are you insisting on the “4/4/4” (4BR/4BA/4000+ SF)? Below you will see what it will cost you – with specifics in each county.
Below are the top three (high price) sales by county; year to date.
For those of you looking to buy in San Francisco, I have a few new properties coming, but can show & sell today. I have a stunning single family home in the Lake Street Corridor; 3BR/2.5BA for $3M. You can see it here. Also, I have a huge condo in the same neighborhood for $1.695M. 1800+ feet, fully detached, home gym, office, move in ready. Details here. Also, I have a large 1BR/2BA in South Beach; low HOA dues, boutique building and parking. Specifics here. Finally, I have new development in the Mission; a three unit project with a 2BR/2BA, a 3BR/3BA and a two level 4BR/4BA. All very high quality.
That is it for now.
Call or email, anytime.