We could not be happier that the rains have passed, the sun is shining and, perhaps not coincidentally, the real estate market is looking a bit rosier. Over the past few weeks we’ve seen a flurry of activity in the sub-$5m market, where inventory is at a five-year low. Interest rates have cooled slightly and many buyers are taking advantage of the chance to buy homes at an attractive price with their sights set on refinancing down the line. We are seeing these trends reflected in our own business — two of our latest listings received multiple offers (five and nine offers!) and another listing was in contract for nearly ten percent over asking in 24 hours.
The big picture is looking brighter, too. According to the most recent market data for San Francisco reflected in the charts below, it would appear that last fall was the bottom of the current market cycle. Price per square foot is on an upward trajectory, and while home prices were still down 14.5 percent year-over-year as of February, we are seeing a higher percentage of homes selling for over asking.
Interestingly, we saw an increase in properties going into contract in the weeks after the Silicon Valley Bank and Signature Bank failures. We continue to believe that San Francisco real estate is a low-risk way to invest your money and it appears others do, too. As one of our clients astutely pointed out, "I can't live in my bank statements." Our advice still stands: If you think you will live in your home for five years, we feel confident you can come out on top when you sell.
Please feel free to reach out to discuss the latest market trends and how it may impact your personal situation. We’d be excited to catch up! In the meantime, stay tuned for some special homes coming your way, including a gorgeous single-family home in Pacific Heights. Be sure to check out our Instagram @MissyWinsSf for some behind the scene updates and sneak peeks.