Reasons why the real estate market is dramatically improving in San Francisco and across the U.S.

Why is our current real estate market on the upswing:

1. First reason.  Falling inventories of homes for sales.  Supply and demand, home Home prices rose by 0.1% in September from the prior month and by 3.6% from one year ago, the largest such gain in six years, according to a report released Monday by Lender Processing Services.
2. Year over year prices are  up by 10% in San Francisco, Sacramento 8.3%, San Jose,11.3%, Las Vegas 11.5%, Phoenix a whopping 17.7% and even Detroit 11.7%.
3. Housing affordability is getting very attractive in terms of traditional measures suhc as as price-to-rent and price-to-income measures, mainly because prices have fallan so dramatically.  Housing is even more attractive considering current low mortgage rates.  The average payment on a median priced home assuming a downpayment and not including taxes or insurance is close to average rents in San Francisco.
4. Housing development is ramping up.  The U.S. is on track to add 1 million new households this year up from 630,0000 last year.  In San Francisco there are over 4,200 net new housing units under construction in San Francisco with building permits for another 1,450 units having been approved and permits for another 2,610 having been requested, units which should hit the market over the next three years. Another 28,060 housing units have been approved to be built by Planning, but that includes 10,500 units by Candlestick, 7,800 units on Treasure Island and 5,680 units in Park-Merced, projects which have timelines measured in decades, not years.  New development is being spurred partially by job growth in the Bay Area. 
5. And another factor is obvious that rents are continuing to rise creating a sense of urgency for stable housing. This is also driving investors to buy income property that they can rent out at increasing rents.
6. Listing inventory is at historical low levels, lowest it has been in decades.  This is due from sellers who are reluctant to sell their homes because they paid more for their home 5 years ago than the current market values are currently offering.  However many homeowners that bought earlier on would stand to make a nice profit on their homes.  Low inventories have led to multiple offer situations in San Francisco sending even fixer properties with deferred maintenance thru the roof..  A recent fixer home in Potrero Hill neighborhood at 382 Texas listed at $970,000 3 bed 1.5 baths had 15 offers sold for 140% over asking, almost $400,000 over asking, all cash and no property inspection contingencies

 If you would like to discuss buying or selling your home please contact me for a initial consultation and we can discuss the best buying or selling strategy for you.

Happy Holidays

Kevin Dunn
Zephyr Real Estate
www.sfyourhome.com
lic 01491910

direct call or text 415.621.6604 or kevin@sfyourhome.com