Stabilizing Real Estate Market and Happy Holidays | Ruth Krishnan San Francisco Real Estate

#sanfranciscorealestate #buyingahome #sellingahome
You’d have to be living under a rock not to know that the market has cooled dramatically since spring 2022 which appears to have been the peak of the 10-year market climb. The current median home price in SF is around 1.6. The last time we saw this number was in 2020.

But what’s going on NOW? The answer is not a lot. Unit sales are down by about 45% from this time last year. Keep in mind that there has been significantly less to buy. Inventory started slowing a month earlier than usual. Starting in October it felt like there was very little to buy, vs our usual November slow down. Many sellers are locked in at such low interest rates and are taking a wait and see approach before giving that up. Some sellers are choosing to stay put and wait out the market. Depending on how long these sellers want to wait, this may or may not be a rational choice.

There appears to be some real opportunity in luxury homes which have seen larger declines in pricing than other segments.

Cooling was caused by high interest rates, a volatile stock market, a lack of consumer confidence- all of which have recently improved, but we’ve not yet seen that translated to higher prices.

We have buyers locking in rates about ¾% less than they were just 3-4 weeks ago. That makes NOW a very unique window for buying. A 1% change in interest affects affordably by 10% that means that buyers that are locking in now are getting around an 8% discount on already discounted homes. We see this as a unique opportunity and we are successfully putting buyers into contract at amazing deals.

Many sellers are asking if it’s a good time to sell and our answer is, it depends. Despite what the headlines say there are still many homes receiving multiple offers, though that depends largely on how they were priced to begin with and the desirably of that particular home.

All indications point to the market stabilizing, also consumers across the board are getting use to the new normal. They’ve realized that despite the market conditions, in most cases the sky has not fallen and THIS is our new reality. I don’t have a crystal ball but I’m not expecting things to change in either direction quickly. If you want to sell in the next few years, I would say now feels better than it has since before the summer correction. If you’ve outgrown your home and are looking to upgrade, you’ll make any losses up on the buy side. The key is realistically understanding the market and going in with your eyes wide open.

Please keep in mind that it takes several months of planning to get a home prepped and marketed so if you are thinking this spring is a good time for you to sell then we should be talking now.

I’m happy to discuss your specific situation with you and be a sounding board.

I hope you had an amazing Thanksgiving with your loved ones and are gearing up for an even better holiday season. There is snow on the ground in Tahoe and we plan to take advantage of that over the Christmas break! We’ve finally recovered from jet lag after traveling to Israel and Jordan for a very quick Thanksgiving break. We ate AMAZING food, learned so much history and enjoyed some time together exploring the winding streets and ruins that date back thousands of years..

For me, and the boys the highlight was definitely Jordan. The landscape looked like Mars and we stayed in a Bedouin camp that has bubble tents with a clear wall that looked out on the desert landscape and the night sky. It was one of the most amazing things I’ve ever experienced. The boys loved climbing around on surrounding red mountains and visiting the lost city of Petra.

Wishing you all the best this holiday season and beyond.
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https://trendinginrealestate.com/where-to-buy/finding-offmarket-properties-the-right-way-to-invest-shaz-nawaz