Are you looking to sell your property in San Francisco, USA fast? Then you will probably have to move fast, as the real estate mania in San Francisco seems to be cooling down. It has already cooled down considerably in 2016, and 2017 should see at least some sense of realism to dawn upon the housing market.
Here’s a look at the real estate trends for San Francisco in 2017.
Trend #1: Property prices are expected to become more realistic.
If you have a property for sale in San Francisco, USA, you should know that home prices are expected to be steady 2017, taking off from the trend that began in 2016. The real estate mania is certainly waning in the city, despite the fact that the demand for new homes remains strong.
There are already signs that prices may have gotten as high as they could, and now with the slowdown in the tech sector and declining venture capital investment, there could be a slight decline in the property market.
As Patrick Carlisle, chief market analyst at Paragon Real Estate Group in San Francisco says, “It’s not the absolute feeding frenzy that we had for the last three springs before this one. By any definition for the rest of the world, it’s still a very, very strong market. It’s just not as crazy hot as it has been.”
Trend #2: There is a slowdown, but it’s not a bad thing
Yes, while there is expected to be a slowdown in the housing market in San Francisco, it’s probably not so much of a bad thing. The fact is the median home price in the city has risen by 66 percent over just 4 years, much higher than the increase in income in the same period.
Only 13 percent of the households in San Francisco can afford to buy a median priced home here. So it’s probably a good thing that there is a slowdown in the property market. As Gregg Nelson, co-founder of the California real estate developer, Trumark Cos, says, “It has definitely cooled a bit, which is a healthy thing. It’s more reflective of where prices are than a lack of demand.”
Trend #3: San Francisco is no longer the hottest housing market in the US
The real estate brokerage firm Redfin has for many years compiled a list of the hottest housing markets in the US. San Francisco has always figured at the top of the list. But in the current scenario, the city has dropped off and is no longer considered to be among the hottest housing markets in the US. It does not even figure in the top 20.
As Nela Richardson, the chief economist of Redfin explains, “It’s still a place where homes are snatched off the market pretty quickly. At the same time, the median sales price for the whole San Francisco metro is $1.2 million, and there comes a point even in San Francisco where prices outrun demand. We’re closer to that point than we’ve been in years past.”