Before the beginning of great brilliance, there must be chaos.
-The fortune cookie message sitting in my office
(Funny story upon request.)
Friends and Families,
The message above is so powerful to me. I keep this little note in my office as a reminder of what it takes to win when things go a little crazy. Whether it is a tricky real estate deal, challenging news and society, or a hectic day in the game called life; this message gives retrospect to the motivation it takes to achieve your goals & win what is worth fighting for.
Communities and families across the nation are in many forms of chaos. I know these are challenging times for so many and I want to offer my assistance in any way. Please do not hesitate to contact me for anything you need during these trying times.
What I can offer you now is this brief snapshot of the second quarter in the San Francisco Real Estate Market.
Neighborhood insights on median sales price trends, sales, and values.
The luxury home market.
Ongoing effects of COVID-19
Interest rates hit yet another historic low at the end of May.
Anecdotally, word on the street is that buyer demand has come surging back and home prices have so far been little affected, though opinions vary regarding different market segments.
We'll know more soon.
We are seeing purchase prices reflect a closer relationship with list prices; showcasing the hugeimpact of COVID-19 on the SF market in late March & May.
Based on the large jump in accepted-offer activityin May (especially for more expensive homes), coming months will constitute a better indicator of whether changes in fair market value are occurring.
These charts show how different price points areindividually impacted and how buyers and sellers are reacting to the the market differently at each level.
May sales and sales prices mostly reflect the huge impact of COVID-19 on the SF market in late March and April.
Median sales prices for both houses and condosdropped significantly in San Francisco in May, but those figures are based on a very low volume of closed sales in the month. An even bigger drop in higher-price home sales also put downward pressure on median prices.
However, activity in May, which is typically among the busiest selling months of the year, still remained well below May 2019. Still, with the easing of shelter in place, as well as the market learning to adjust to new circumstances, it isexpected the recovery will continue to surgecloser to normal.
Generally speaking, market activity – as measured by the number of listings going into contract – continued to pick up rapidly in May, bouncing back from the steep plunge following the first shelter in place orders.
Let's take a look at appreciation & home values by SF neighborhood.
The SF market – as also common in other urban centers – was more deeply and more quickly affected by COVID-19 and shelter-in-place than other more suburban county markets, seeing larger initial drops in activity.
Even with the remarkable rebound of buyer demand in May, its recovery is, so far, lagging other counties on a year-over-year basis, especially more suburban and rural counties, such as Marin and Sonoma. A variety of factors may be at play, which are discussed on a chart within this report; however, definitive pronouncements regarding longer-term market, economic and demographic effects are impossible to make while the crisis is still at hand.
Rent rates appear to be dropping quickly, subsequent to the enormous increase in unemployment – which typically impacts the rental market more rapidly and significantly than the for-sale market.
NOTE: Any statistics derived from closed sales – such as median sales prices, sales volume and days on market – reflect the state of the market 3-6 weeks ago when the offers were negotiated and accepted – and when the market was most terribly impacted by the crisis.
Work With Valerie
Valerie Aliwarga is a leading real estate agent in San Francisco and has helped hundreds of buyers find their dream home.