By Andrew Roth
Amid all the talk of bubbles – both those that expand and those that pop – I look to historical real estate data to uncover and provide perspective to trends in the market.
Based on sales reported in the San Francisco multiple listing service (MLS), it may appear that the market is softening – however, consider the facts.
Excluding multi-unit building and TIC sales, average comparative monthly data for the 4-month periods of Sept 04 – Jan 05 and Sept 05 – Jan 06 tells the following story. Properties are on staying on the market for longer periods of time (19 vs. 24 days), there are about a quarter more units on the market (1218 vs. 1513 units), slightly fewer units are selling (516 vs. 446 units), and median prices are up ($766,000 vs. $826,000.) These trends appear to be stable.
Generally speaking, Buyers have more choice today and are able to take a more thoughtful and calculated approach to their purchasing decisions. Sellers have more competition, and thus need to ensure their properties are broadly exposed, show well, and priced correctly in order to stand out in a crowd.
What’s to come? The Spring season is upon us when we traditionally see a bump to activity levels in both supply and demand. My gut tells me we will see slightly higher inventory levels still, however, I expect no “fire sales.”
Please let me know if you’d like to further discuss how the current market effects you.
If you are a Buyer who has been awaiting the right moment to enter or re-enter the market, this may be your time. Please give me a call or email to discuss how I can help your home search and get you safely into the home you’ve always hoped for.
If you are contemplating a sale, please feel free to contact me to review a marketing strategy that will give you a strategic advantage in the market and the best opportunity to sell your property for the highest price.