As we begin the last quarter of the year, change is in the air!
First, a surge of new listings hit the market last month — there’s more inventory in San Francisco now than there’s been at any time this year. Just over 40% of those properties for sale are priced under $1M (on par with Zillow’s recent valuation of homes across the city — see how your neighborhood stacks up). Certainly buyer demand is persisting, however competition for any given property is generally letting up… for now. The consensus among forecasters is that prices in the Bay Area will rise through 2016 with regional employment playing a critical role.
Second, there seems to be a shift in buyer demand as higher priced homes linger and take price reductions while relatively more affordable ones attract interest. The median sales price of properties in SF fell slightly last month to $1,150,000 and the number sold is down dramatically year-over-year. To further this point, the generally less expensive East Bay, for example, is experiencing an increase in number of sales from last year, and median prices in some cities — like Berkeley — continue to climb. [Those in SF’s ultra-high-end market still have plenty to choose from including these 3 Most Expensive.]
From now thru the end of the year — before the Spring 2016 selling season begins — should prove an opportune time for prospective buyers to make a move, and it may well be the best time to borrow money in recorded history.