March 2024: San Francisco Real Estate Insider
Hello and Happy Tuesday.
As we have a break from the rain I am seeing lots of positivity as it relates to San Francisco and the economy. When a winter storm sucks up five days as the top news story, it makes me wonder if the positivity is “just” a political cycle or real progress. I can comment on what I see and experience; the local real estate market is fluid and moving, QOL issues are reportedly down, the pace of new small businesses has ramped up, the S&P 500 closed above 5,000 (for the first time in history), inflation numbers appear to be “under control,” and in recent weeks, Bay Area tech companies have been pushing harder on ‘return-to-office’ mandates. Some of those points above are undeniable and others subjective. The bottom line (for me) is that I hear optimism much more from clients, neighbors, colleagues and my neighborhood small business owners than I did a few months ago.
Looking at the local real estate market, the flat line in interest rates has not slowed the pace of activity. Single family homes continue to sell quickly – if marketed and priced properly. As mentioned above, inflation appears to be cooling but in the local housing market, it’s still an issue (i.e. affordability). The Bay Area and San Francisco has always been expensive, but to detail the affordability scale more clearly, the chart below puts perspective to earning(s) and affordability per select US metros.
Looking at median home prices in select US metros, the Bay Area (and California) are at the top of the chart.
Is it all worth it? That is always a personal decision but most argue it (where you live) always comes down to work / employment and opportunity. I will leave you with that to ponder as I am going to be brief this month.
On listings, I have some great properties for a wide profile of buyer and investor;
The self-proclaimed best condo in NOPA: 4BR/4BA of curated living with steel and glass accents. Almost 3000 feet over two levels and truly lives as a single family home.
A legacy Sea Cliff home with 3BR/3BA over three levels of living. All bedrooms are on the same floor (for those with young children).
For the investors; a turn-key, low expense 16 unit corner property on Telegraph Hill. Priced to sell at ~11 times gross.
In Presidio Heights, on Sacramento Street in the core of the desirable retail corridor, I have a three unit commercial property. Shops and offices on this strip buck the trend and are in demand and rent quickly.
If any of these properties sound of interest, please reach out for specifics. Have a great week!