We are solidly in summer now and was that ever a hot pre-4th of July in the Bay Area! As a matter of fact, 4th of July saw the hottest average world temperature on the books.
Lots of people are traveling, but we are seeing a good amount of renewed interest in the real estate market. Buyers are out there. The inventory is down, so even though we’ve shifted to a more balanced market, there is still a supply and demand issue which will keep prices from falling too much despite the higher interest rates. Workers are definitely being called back into the office in greater numbers, which is requiring them to live closer to the office even if they go in just a couple of days a week.
Many commercial businesses have left the city but, although I agree we have serious problems, some of them are more indicative of a culture shift than a “doom loop.” Large malls just don’t draw the crowds they used to, and solely commercial downtown districts are hurting countrywide. What we need to do is reimagine these spaces and revitalize in a way that takes into account how people are living today. There’s been a lot of talk about converting some of the downtown spaces to residential and, admittedly, I have no idea how difficult that is logistically, but I would love to see that happen.
San Francisco is a city with a strikingly beautiful landscape and such a great fighting spirit. We will find a way through these troubles and change and evolve as necessary. After all, our city flag features a phoenix rising from the ashes and that symbol has been associated with San Francisco since it was featured on the first official city seal in 1852 – long before we rose again after the 1906 earthquake!
So, how is the real estate market faring?
I’ve been noticing a big uptick in buyer interest in the market and people are starting to ramp up their property searches, but they are still taking their time to jump in. Interest rates have somewhat stabilized for the time being, and there is talk of much new inventory coming on after Labor Day. As of this writing the inventory is still pretty low. It could be a good time to consider selling (or buying). For sellers, there’s less competition, but still buyer interest. For buyers, there’s more room for negotiation than there has been in a long time, and though rates aren’t the 3% they were just over a year ago, there’s some chatter that they may be going up again as our economy and the job market are still going strong.
Looking at all property types in Glen Park sales compared with this time last year: The median sales price is down by about 6%* ($1,450,000), price per square foot is down by about 16%* (at $1,073), active inventory is down by about 7%* (13) and sales are down in volume by about 28%* (21).
*A 3-month average from April – June
Here’s a look at what sold in the month of June
And here’s what’s currently in contract
And lastly, the inventory that is currently available in Glen Park
Until next month – enjoy the summer and hope to see you out in the neighborhood! If you have any real estate questions don’t hesitate to reach out.
For more San Francisco sales data, visit: thegoods-sf.com/AmandaMartin/
Amanda Martin