Even as we write this blog, we are surprised to share that so far COVID and SIP (Stay In Place) has only had a minimal impact on San Francisco luxury real estate. Yes, we hear that ‘high rise’ sales have slowed down significantly and that rents have come down substantially (- 9.2% per the San Francisco Chronicle), but we have witnessed continued demand for well presented, well located properties that are listed at a “fair” price.
Since the beginning of shelter-in-place, we have helped nine sets of clients buy and sell homes. Our sold listings have been around the ask price or above, and all went into contract within 10 days of coming on the market. We hear similar anecdotes from our colleagues. A great example is a Pacific Heights (District 7 San Francisco) property, which was listed for $18M and received three offers within one week of coming on the market.
We see several factors driving the current market:
- Desire to move closer to family and/or to move to the suburbs
- Increased value placed on outdoor space
- A sentiment that real estate may be a safer and less volatile investment than the equity market
- Interest rates have hit all-time lows
For us, the importance of presenting properties in the best light possible by painting and staging has become even more evident. They say you never get a second chance to make a first impression. For that reason we put an enormous amount of team effort behind property preparation and outstanding photography. We then ensure the widest possible exposure for our clients’ properties via personalized emails to the entire san francisco real estate agent community, social media campaigns (which have reached 200,000 potential buyers so far this year) and more.