The overall San Francisco real estate market has remained very stable despite a chorus of earlier concerns from some increase in fall inventory, Brexit and now the Trump presidency. However, the final 5 weeks of 2016 were surprisingly strong in terms of number of properties going into contract and absorption of existing inventory at reasonable price positions. That foretells a likely higher level of buyer confidence moving into mid-late Winter and the early Spring selling season. Rising interest rates also are likely driving some buyers off the fence and more rapidly into the market than may otherwise have been expected. There are some continuing signs (from late 2016) of softness in the upper end of the condo market and in the very upper end (top 5%) of prices in the single family home market, though even those sectors have firmed in the past several weeks as well and beginning to show signs of breaking out. Sales of single family homes for the most part remain relatively robust and quite heated in the lower end of the SFH marketplace..and we can expect that to continue through the first few months of 2017.
From a macro level perspective, the market appears positioned to be nicely balanced between reasonable demand, reasonably low inventory and slightly increased buyer motivation. “Balance” seems to be the most appropriate word to describe current market conditions and that bodes well for a rational first few months of 2017. The amount of impending inventory in late Winter early Spring and any economic repercussions from moves in the first 100 days of the new Presidency will certainly have some additional impact which is still yet to be seen. Overall, it’s a more positive market and economic position for San Francisco real estate than may have been expected just a couple months ago.
For a more detailed micro perspective of a specific property or neighborhood, please contact Rob Levy directly at 415-385-8011 or Rob@RobLevy.net