It isn’t news that we have a serious housing shortage going on in San Francisco and competition has been fierce for available properties. The cutthroat pace of the market has meant that buyers have had to offer high prices AND very attractive terms to sellers to be successful. Buyers with full loan approval, or all cash, have been in the driver’s seat for years.
But what if you have to sell a home in the City before you can afford your next purchase?
The past several years have been extremely difficult for homeowners looking to trade. I’ve had dozens of conversations with clients in this predicament, and their feelings have all been the same:
“Sure, I can sell my house for a ton of money….but where will I go?” Or, “If I sell first, will I be able to get in again without the market getting away from me?”
If you have been sitting on the fence trying to decide when to make the move in SF, you’ll be happy to know that now may be one of the best opportunities in years.
Inventory is up, and absorption is slower.
The number of available properties has risen and buyers are taking their time to consider their options. This means more choices and less competition on the buy side of your trade. Therefore, the risk of having the market run away from you while you try to get into contract on a home is mitigated, giving you more control and making your move from one property to the next a bit more sane.
Prices have come down, but not by much.
On your sell side, don’t feel like you missed the peak now that the market is calming down. Prices are slightly off from the high point of last spring, but “selling at the peak” doesn’t matter as much if you are selling and buying in short order. Remember, if you are trading, you are staying invested in the same market. And as a bonus, if the sale price on your current home is a bit lower than it would have been last year, that means less transfer tax and less commission paid, with the same result – a new home that meets your needs!
Pricing strategies are changing.
Sellers and agents see that buyers have more properties from which to choose, and that is having an effect on pricing strategy. More and more properties are being priced closer what the sellers want to receive, instead of on the very low side in hopes of driving multiple offer bidding wars. This gives the market breathing room and can offer buyers more opportunity to negotiate. For those who are looking to trade, it may even be possible to convince a seller to accept an offer to purchase your new home before you actually sell your old one. This gives you control over your process and your move. While it hasn’t been possible in recent years because of fierce competition, I’ve seen more opportunities lately to make this type of deal work.
There really is never a perfect time to change homes, especially in San Francisco. But for those needing to move, things are finally looking up.
To talk about your specific real estate needs, please call me. I’m happy to help!