San Francisco Property Trends Holds Hope For Both Home Buyers And Sellers
After a seemingly never-ending slump, the housing market in San Francisco CA like elsewhere around the country is finally showing some signs of a modest recovery. That is good news indeed for those looking to buy San Francisco area property because there may never be a better time to grab a dream home in one of the hottest real-estate markets in the country for a great price. The improving market numbers are also a sign of growing confidence in the market which means that the time may finally also be right for those looking to put up their homes for sale in San Francisco.
But first let’s take a look at the numbers. Publicly available market statistics show that sales of San Francisco area homes has continued increasing over the past three months as have their median prices. The San Francisco Real Estate Report, recently noted that in June, sales of single-family homes and re-sale homes in the city was about 16.9% higher than May, while condo sales were up nearly 21% month over month.
Meanwhile, the median price for single family homes rose 3.2% from May, marking the third month in a row that home prices have shown an uptick in San Francisco according to the RE report. The average prices that homes sold for in June were also 9.5% higher than the prices that they sold for in May. Condo prices however declined by about 0.5% in June compared to the previous month.
While the numbers are promising on a monthly basis it is important to remember that they still are considerably lower than comparable figures from a year ago. For instance, the overall number of homes sold in San Francisco up to June this year was 17% lower than the number of homes sold between January and June 2008, while median prices were about 6 % lower. Condos sales meanwhile were almost 34% lower in the same period according to RE Report. A relatively high number of homes for sale in San Francisco are also either those that are under foreclosure proceedings, bank owned or on short-sales. Until this inventory gets pushed out, there will continue to be some pressure on home values, according to the experts. Even so, the fact that the decline in home values appears to be slowing and the fact that sales of San Francisco properties are picking up are seen as hugely positive signs.
What all this means is that the time may be perfect for those looking to buy San Francisco area property. Home values have significantly declined in San Francisco over the past two years and properties that may have been simply unaffordable even as recently as 2007 are available today at near bargain basement prices for the area. According to Trulia.com the median home price in San Francisco was $630,000, which is about $145,000 lower than it was just a year ago. Combined with the fact that mortgage rates continue to be at historic lows, prospective buyers truly have a fantastic opportunity to buy San Francisco property at values that are unlikely to be seen again for a long time.
Sellers hoping to put up their homes for sale in San Francisco should take heart from the uptick in sales and home prices being reported in the area over the past few months. California is the biggest real estate market in the country and what happens in the state is usually seen as an indicator of a broader national trend. What it suggests is that home prices may be beginning to bottom out and start the climb upwards again. The $8,000 tax credit being offered for first time buyers under the economic stimulus plan and a growing willingness by banks to once again start financing mortgages are also positive trends. By pricing their property right, homeowners looking to sell in the San Francisco may be pleasantly surprised to find that they are able to attract more buyers than they might have otherwise assumed.