Greetings Glen Park!
We are nearing the end of the summer and there’s a lot of talk about what’s going to happen with inventory this coming fall. We have been stuck in a declining inventory pattern for quite some time, and this is primarily what is holding prices from falling further than they have during this time of escalating mortgage rates. Cash purchase in San Francisco for all property types is holding steady at about 18% compared with last year. Obviously the mortgage rates don’t hurt those buyers, and they are finding some deals to the detriment of the sellers and non-cash buyers. Our inventory is low because many would-be sellers are held hostage by their “golden handcuffs” of 2.5-4% mortgage rates.
It looks like things seem to be somewhat under control with inflation for now, we can expect a gradual lowering of rates, but I would be surprised if we see anything as low as early 2022 anytime soon. So, as people realize that there isn’t going to be a huge decrease in rates, and life has to go on, many sellers are adjusting their expectations and looking to come to market this coming fall. (So is the consensus from my real estate community and contractors/stagers.)
Now for the numbers – Sales and inventory are down, but as you can see, all sales in July were over the asking price, so the tight inventory does seem to be keeping competition alive. As I mentioned earlier, I hear the buzz of inventory to come, and I expect to see a good amount of properties start to hit the market after Labor Day weekend and once people have settled back in from their summer travels. This was definitely a busy vacation season after so many years of Covid hibernating.
Here’s a look at what sold in the month of July:
Here’s a look at what’s currently in contract:
And lastly, the inventory that is currently available in Glen Park:
You’ll see that I also added Cancelled, Expired, and On-Hold listings since last month. I’ll include this going forward as well.
Meanwhile, back at the ranch….(As you may or may not know, I made a move to San Anselmo back in 2020 but still spend most days in the city.) I’m working on a new type of property maintenance that I didn’t have to contend with in San Francisco – defensible space and fire-safety. My property has a good bit of wild land that is covered with broom (so invasive!!) And poison oak (don’t get me started on this devil weed…). So, this year I have hired some friendly goats to help me out. They are cute, and curious, and love to eat my weeds. The only problem is that there are a few newer members (kids/babies) that don’t seem to care about the electric fence and come and go from the moving enclosure whenever they please if they see something tastier on the other side. So these little rascals just squeeze out between the squares in the fence and wander willy-nilly. I’ve become quite a mountain goat myself chasing them up and down the hills to get them back in the enclosure and off the road or safe from the coyotes that gather to scheme on a nightly basis. It’s really quite a circus. Here’s a picture for your viewing pleasure.
There is also a great organization in San Francisco that rents goats for large projects – Urban Grazing. (You may have seen them in Glen Park before or areas of Bernal Heights, and you can drop off your used Christmas trees for them to eat in early January!) They can also do small jobs, so if you’ve got a real jungle going in your backyard, it might be a fun solution.
For more San Francisco sales data, visit: thegoods-sf.com/AmandaMartin/