Our inventory is at exceeding low levels and demand is fueling higher prices. As my colleagues have noted we are definitely in a sellers market.
Here is some insight into our market.
If you need specific building or neighborhood information let me know. It may be beneficial for you to refer your clients to a local agent.
Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Here are two blog posts I've written recently that sum up the current SF market:
Seller's Market Continues in San Francisco
Cash Sales All the Rage
Case in point: very recent small Sunset fixer down the street with serious foundation problems went on market at 525k. Hordes of people at open houses - ran out of flyers each time. My contractor estimated cost to fix foundation and redo upstairs completely (really needed it) to run in the neighborhood of 150 -200k. Ok, we were thinking IF house sells at asking we are talking after fixing say 700-750k which is low but about what homes in this area go for. Apparently, this home sold for 780k, all CASH. 250k over asking and not to mention the remodeling cost to come. I don't know how many offers but you can imagine there had to be quite a few.
If this is not a sign of a bubble forming, I don't know what is.
Our market is hotter in some areas than in others.
The absorption rate is derived by taking the number of active listings and dividing them by the number of sales last month. The indicator says that if the sales continue at the same rate as last month how long, in months, will the current inventory last.
A sellers market is any number below three. A buyers market is any number above five. In between three, four and five months supply is a balanced market.
When it is a seller's market the advantage is to the sellers. They can get what they want in negotiation because the buyer is under pressure to give to get. In a buyer's market the converse is true, the seller gives ground in negotiation to get the property sold or the buyer goes to a different property.
Seller's markets pressure prices up and buyer's markets pressure prices down. This is supply and demand market forces at work.
We are encountering multiple offers for the most desirable properties. The offer dates are set within 7-14 days from the listing date. No contingencies offers are common, especially with so many all cash offers.
We have a lot of stats and information over here and we can help.
Alina Aeby-Broker Associate
Pacific Union International
In a hot seller's market there is no replacing the best agent you can get. You need someone who will do the research on the property, the sellers and their agent to give you the best strategy to win. Winning a competitive bid is not just outbidding the other buyers in price. Sometimes other factors can make the difference and a great agent knows how to find out and structure your offer to stand out above the rest. Best of luck.
Depending on the property, SF is very competitive right now. At our brokerage (Zephyr) we're seeing about two-thirds of properties selling over asking with multiple offers. One way to gauge this is to notice how many listings have set "offer dates", which encourages competition.
If you have particular market segments in mind, let me know, and I can give you more specifics.