My place went on the market in August. All the brokers said it was "priced right" or "priced to sell" and that it would be gobbled up. I spent way to much money on very hight end remodeling even though the loft is only a few years old. Very unique, because it has a 500 sqft back patio deeded to the until which is a garden with trees, bbq, furniture, and it gets full sun all day long. Nothing by air, sky sun back there.
Well long story short it's allmost thanksgiving.
It's still on the market. Even lowered the price once. It's on the market for $50K less than what it appraised for only 9 months ago.
The good news is, i don't have to sell and with the rental market out of control I don't see the benefit of doing so anyway. So yea it's a great time to buy....
Also, don't let your agent convince you to over spend, or get caught up in a bidding war. Remember that your agent only gets paid when you buy a place, so they have all the incentive in the world to see you buy something. They won't tell you that it's better to wait, better to not bid higher or better to hold out for the seller to lower the price
Timing to conincide with current lease end.
How long she will stay in the area.
Where exactly she wants to live and what amenities she wants in the development.
As a general rule I say don't wait. Buy now if you find what you like. The longer you wait to find the right deal, the right view, the right location, just never comes, you just loose on appreciation and life enjoyment the longer you wait. As for time of year I like October, November, and December. There's typically less inventory, but also generally less activity. Seller's tend to be more desperate or developers want to move more inventory before year end. Hope some of this helps you.
The poster Cole lost money on his property, and is now saying they are great deals, and how it's a great time to buy at '05 prices. Heh. You can probably wait a bit and get something at '02 or ''03 prices.
There is a wave of foreclosures in the queue, which will drive prices down further. Many overspent in the SOMA area in the past 6 years, and many are now unemployed or underemployed.
I sure hope your friend didn't buy anything yet. I've been eyeing the market, and have seen so many price reductions. The market is pretty chaotic right now with listing prices all over the map. It'll be a little while before things stabilize.
As for interest rates, sure, it's great to get a mortgage when interest rates are low. However, higher rates will drive down home prices further.
My advice is to avoid any real estate agent who tells you that it's a great time to buy. Right now, your friend has the luxury of not rushing into a purchase.
Its no surprise that the end 2008 and beginning of 2009 changed the real estate marketplace in San Francisco. Many of the cyclical norms when out the window and we are still in that period of market correction. SOMA and South Beach are two neighborhoods that have a large amount of inventory which is great for the commodity shopper.
My advice is to base your decision on mortgage rates rather than supply and demand of condos/lofts. As rates continue to be held low - take your time and continue to look for the right place.
Please feel free to contact me if I may provide more information.
Best of luck!
Paragon Real Estate Group
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
It's July of 2009, my loft just sold.... well I sign documents at the title company this morning, so keep your fingers crossed for me.
My place sold for $180K less then what I was in contract for back in October 2007 when the buyer pulled out in week 3.
The soma, southbeach, mission bay area is such a great opportunity for someone to buy in now at 2005 prices.
Let's face it, people will always want to live in this beautiful city, our economy will be the first to recover and your values should skyrocket. I know my crystal ball told me...
But seriously from someone who just had to sell for $15K more then what he paid for a loft 5 years ago and spent $90K remodeling.... there are some real deals out there!
As a seller, you may enjoy the benefit of years of high appreciation rates and, on the other side of the transaction, as a buyer you enjoy near historically low interest rates and a large selection of homes to choose from. I am holding open a condo this weekend in San Francisco that has had a $76,000 price reduction. If you would like to discuss this market and facts about it further, please get in contact with me and I would be delighted to answer your questions and help you make a financially responsible, well thought out decision. I have 8 years full-time experience in San Francisco Real Estate and this is the BEST buyers market I have ever worked in.
I have no answer for you, but I find the socketsite blog (URL below) really helpful in understanding what's happening in new development (inventory/actual glimpses inside each). You might want to pass it along to your friend.