San Francisco Market Update February
Here is a quick San Francisco market update. In San Francisco, the Spring homes sales season starts in earnest at the end of January, and this year seems no different. We are seeing homes selling with dozens of disclosure packages requested and multiple offers received.
I presented two offers last week in the Sunset and both properties sold for way over their asking price. The listing agent for one of the houses gave out 42 disclosure packages and received 20 offers! The other house received 5 offers, and curiously the listing agent asked for agents to present their buyer’s offer in person at the broker’s office. I haven’t done that in years!
There are Fewer Cash and Investor Buyers
Many clients, both buyers, and sellers ask me about cash buyers, and the likelihood an investor will swoop in and purchase a home with a suitcase of cash. It certainly depends on the neighborhood, but in general, in more residential neighborhoods (Noe Valley, The Sunset, The Richmond as examples) it is quite difficult for investors to compete with buyers intending to occupy a home. Investors have a formula they work with and they expect to make a certain percentage profit when they purchase a house to fix up and sell. It’s nearly impossible for them to compete with buyers that intend to owner occupy the home. buyers who move into a home also get better interest rates and terms when financing their purchase.
Sales are down, but only because there’s no inventory
When you hear someone say sales are down in San Francisco, many people assume it is because demand is down. In San Francisco that could not be further from the truth! Sales are down in San Francisco but it is because there is not enough inventory. I have several buyers that are constantly online hoping to see a flood of inventory hit the market. Usually, by mid-February, we do see many properties come on the market satisfying buyers’ need but so far this year we aren’t seeing it yet. Contact us if you have a question about this San Francisco market update for February 2020.
San Francisco median sales price ebbs and flows with the seasons
If you have specific questions we would love to hear from you