The state of the current market in San Francisco is still very competitive for buyers. But, the inventory levels are way up; probably the highest its been in seven years and approximately a third higher than last year at this time. Compared to last year, we are seeing a lot more price reductions from sellers; this is likely a combination of unrealistic pricing, buyer’s choice (i.e. inventory) and likely a misread on the neighborhood market by the seller side.
For reference, on the luxury side of the market ($3M+) there were 43 new house listings coming on market between Sept. 1 & Sept. 15. Twelve (28%) now show as contingent, pending or sold. Historically that is a very low number. Sellers will need some patience as they list their homes for sale.
In our corner of the City we see a very different picture. As always our “issue” is lack of inventory. Sales volume over the last quarter was very low. The demand for the area remains high as I hear and see a lot of agent requests for Sea Cliff and Lake Street homes, yet we just don’t have the inventory to accommodate the buyers.
The numbers for the quarter:
Year over Year:
Top Sales of the Quarter:
In politics, Prop 10 is a hot topic for November. In the event you are not familiar with this initiative, it would expands local governments’ authority to enact rent control on residential property. This initiative will also repeal Costa-Hawkins; allowing cities and counties to regulate rents for any housing (houses & condos, which are currently not under rent control in San Francisco). They also can limit how much a landlord may increase rents when a new renter moves in (i.e. vacancy control). You can read more about it here.
By year end, we could possibly see two more interest rate hikes. If you are pondering a refinance, now would be the time to start your application. If you want a suggestion on a lender or mortgage broker; let me know and I would be happy to provide contacts.
In neighborhood news; it looks like Safeway is proposing to utilize the old Fresh & Easy site on 32nd Avenue & Clement for an Andronico’s. In the event you have visited the Andronico’s on Irving and 15th Avenue, you know this a big win for the neighborhood (vs. a Safeway).