February 2024: San Francisco Real Estate Insider
Hello and happy Thursday.
As we settle into the second week of February, the market is moving at a brisk pace. If you recall, the market heated up with buyer activity at the end of 2023 and the pace has not slowed. Open house traffic is way up and a surging stock market helps with buyer confidence!
The difference between January 2023 and last month is night and day. Transactions are up over 30% this January (from last January). Looking at the single family market over $3M, sales are up 70%! Obviously the most in-demand product is a single family home.
But, neighborhood condos in smaller buildings are doing well. The greater SOMA market is showing signs of life as well. It’s amazing how quickly this market can shift!
The demand in the marketplace is resulting in more sellers that would have listed in spring or early summer hustling to try to get their property to market now. I don’t think this acceleration to market will have a big impact on the overall inventory in the spring market, but why wait for competition when buyers are waiting?
Looking at interest rates, the message from the Fed seems to be that they are done with rate increases. Nobody knows to what depths rates may fall; it’s anybody’s guess. Below is a snapshot of what industry experts/financial institutions are predicting for rate cuts in 2024. A swing from 50 to 275 basis points is a significant shift. We will know who is overpaying their analysts by years end.
On the home insurance font, the Department of Insurance has approved rate increases for California carriers. This should bring more availability to the market over time, which is great for buyers. But underwriting guidelines are very tight. Expect a carrier to request documentation on the condition, age of the roof, electrical, heating and plumbing systems, as well as a 3R report to show the permit history/status.
As far as inventory, if you are looking for any of the following types of properties, please reach out as I have some gems coming in the next month.
Single family home in Sea Cliff, 3BR/2.5BA, three levels of living w/all BR’s on the same level and back yard access from kitchen, under $3M
Two level “rock star” condo in NOPA, 4BR/4BA, approx. 2,800 feet. All the best finishes and design. ~$3M
Two level loft condo in immaculate boutique building in South Beach, 1BR/2BA, floor-to-ceiling windows, parking, laundry and monthly dues under $500! At $825K, this is an off market deal/steal!
Two unit property on the top of Corona Heights with panoramic views, two 3BR/2BA vacant flats, legal “guest” space with a tenant, two car garage, over 4000 sq. ft. on an oversized lot. $2.798M
If anything sounds of interest, just reach out for specifics!