Have you been thinking about buying a home in San Francisco but haven’t seen anything that makes you want to get off the fence? Fall is here, so inventory will come on fast and hot, then be gone in the blink of an eye. We’ll see an influx of listings in September and October, followed by a drought for about four months until the Spring selling market.
If you’re ready to buy, here are a few reasons why it may be time for you to jump into the market.
In early August, we mentioned agents reporting that buyer activity – renewed interest in getting back into the market, visits to open houses, and so on – was picking up due to a number of issues: Price reductions, less competition, the drop in interest rates, and the dramatic recovery in stock markets. And a small rebound in SF sales did show up in August data – sales usually tick down in August from July – though volume was still well below last year.
Across the Bay Area, year-over-year, home-price appreciation rates and overbidding statistics have continued to drop, and days-on-market to climb. In August the number of new listings coming on market was lower year-over-year, and the number of active listings for sale declined, though still significantly higher than last year. There is usually a dramatic jump in new listing activity after Labor Day: In fact, September is typically the single month with the highest number of new listings, which then fuels autumn sales.
As of early September, interest rates have increased again and stock markets declined once more: They continue to see substantial short-term volatility and it remains difficult to confidently predict their future movements and effects of real estate markets. The next major indicator of buyer and seller psychology and market dynamics will be what occurs during the next 2 months of the autumn selling season, prior to the mid-November to mid-January holiday slowdown, typically the slowest market of the year.