San Francisco Real Estate: Buyer's Market? Seller's Market? Both?
By Joel Walsh
San Francisco real estate, one of the USA's supposedly "frothiest" real
estate markets, is no longer an instant jackpot for sellers–now it's just a
jackpot. Buyers, though still facing high prices, now have enough time to
actually think an offer over before making it.
Back in 2004 a piece of San Francisco real estate might spark a bidding war
among prospective buyers as soon as it hit the market. Today, a property might
actually–gasp!–sit on the market long enough for buyers and sellers to
negotiate.
San Francisco Real Estate: Good Time to Buy, Sell, or Both?
To recap the San Francisco real estate market 2004-2005
2004: prices high, seller's market;
2005, spring: prices even higher, all-out seller's market; 10 offers on a
new listing common
2005, fall: prices only slightly higher or same; 1-2 offers on a new
listing more common
In short, while average selling prices haven't dropped, now might still be a
better time for prospective buyers–and even sellers–who prefer a calmer
market.
True, there are those who have been saying for five years now that you should
sell as fast possible and not even think of buying. Now that the market for real
estate in San Francisco more closely resembles a real estate market than an art
auction, those same people are talking of a "slow-down" and even the bursting of
the often-alleged Bay Area real estate bubble.
But after accelerating head-long for years, it was hard for the market to do
anything but slow down. Meanwhile, with multi-million-dollar houses, apartments,
and offices selling for no less than before, it's hard to feel like anything is
bursting except sellers' bank accounts. Of course, there's never any telling
what the future might bring.
Tom Hageman, a licensed California realtor with a blog at
ziprealty.typepad.com, notes that the market is still strong, but properties
will sit on the market longer starting in fall 2005, for a variety of
reasons:
More properties entering the market, since realtors traditionally advise
clients to list properties after Labor Day, when everyone's back from vacation
and the Bay Area's radiant autumn casts an attractive glow over
properties.
Buyers getting nervous at the media talk of a real estate bubble.
Some sellers have overpriced their properties significantly.
Ideas for Buyers and Sellers of Real Estate in San Francisco
"When prices fall or rise is very hard to predict," notes Tom Hageman. "If
anyone truly knew what was going to happen next, they would be a very rich
person."
Still, Hageman's blog offers some advice that seems to make a lot of
sense.
For buyers, Hageman thinks that now is a relatively good time to buy, with
fewer sellers setting unrealistic prices, the bidding war of Spring 2005 long
over with, and interest rates still relatively low.
For sellers, Hageman thinks that except for properties in high-demand areas,
"it will be unlikely that you will receive record breaking multiple offers. I
believe that the old saying of 'your first offer is usually the best' is often
true."
Important disclaimer: the above article is provided for your reading pleasure
only and is not intended to provide investment advice. All examples are
hypothetical and intended as illustrations, not guidelines. Opinions expressed
in this article are not necessarily those of the owners.
About the Author
About the author: Joel Walsh is a freelance writer who advises that none of
the preceding should be taken as investment or real estate advice, and hopes you
get real estate advice from qualified professionals. You can go here for more
news on San Francisco real estate: real estate: http://www.bayarearealestateadvisor.com
Article Source: http://www.simplysearch4it.com/author-articles/4365/1.html
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