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Happy
Indigenous Peoples' & Columbus Day!
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Did you know?
In 1937, President Franklin D. Roosevelt proclaimed Columbus Day a national holiday, largely as a result of intense lobbying by the Knights of Columbus, an influential Catholic fraternal organization.
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Now let's take a look at the history of Bay Area Real Estate & how trends are shifting in 2020.
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Social Links are not complete
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(click image to view SF properties =)
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"Is it a buyers market yet?"
The question that everyone is asking me.
The answer is a bit obscure because it depends on where & what.
With microclimates ranging from neighborhoods to property types, it will really depend on what you need in your next home.
Fall is always a great time to win a deal. Historically, we see the most inventory in the fall over a shorter selling season due to holidays; giving buyers more power with properties that don't sell in 30+ days. That's the norm, let's add a pandemic and an election to the mix and we have a bag of uncertainty- a deal killer.
If you are thinking of owning a piece of the Bay Area I am happy to help you decide if renting or buying is the right option for you.
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The San Francisco Real Estate Market:
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7 Months after the Pandemic Struck
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The table below compares Q3 statistics across 5 years. Since the dynamics of the SF house and condo markets have significantly diverged since the pandemic struck - the condo market has been weaker - we broke some of the 2020 stats out separately in the table, and then in some of the charts following.
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For Market Reports for San Mateo and Marin,
Please click the links below.
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A snapshot of Sept 2019 - Aug. 2020:
Below you can see what areas are seeing the highest volume of sales comparatively.
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Yes, headlines will always tell you that many are moving out of the Bay Area.
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History tells us this is still one of the strongest markets to invest in long term.
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The inventory of condo listings on the market has been soaring, and price reductions are heavily concentrated in the condo market.
Hundreds are still selling each month and that number has been rebounding in the last couple of months - but increases in supply continue to outpace demand. Within the condo market, the high-rise segment appears to be the weakest, almost certainly due to pandemic-related reasons.
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Median sales prices can rise because of increases in fair market value – i.e. buyers are paying more money for the same home (supply and demand) – and/or because buyers are purchasing larger or more expensive houses.
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Affluent and very affluent buyers are an increasing percentage of the total market throughout the Bay Area. In San Francisco, the average size of houses sold in Q3 jumped almost 6% year over year.
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Median Sales Price:
Trends
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Annual Percentage Changes in Median Sales Prices through YTD 2020
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We have been getting many questions on annual percentages up and down in median sales prices, so we updated the following 2 charts. The 2020 YTD percentage will almost certainly change, one way or another, by the time full-year sales data is in.
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Luxury Home Sales by Quarter
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Q2 is typically the strongest selling season for luxury homes, but the pandemic changed that dynamic in 2020. Though the SF luxury segment recovered in Q3, in many other counties around the Bay, luxury home sales have soared to all-time highs.
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Active inventory has been surging in recent months (first chart below), as has the months supply of inventory (second chart). As mentioned before, the supply of condos for sale is currently dominating SF inventory.
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Buyers are continuing to taking advantage of low-interest rates and high inventory.
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Even if supply is outpacing demand, more listings went into contract in September than in any month in the last 2 years.
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But the number of price reductions - again heavily concentrated in the condo market - has jumped to its highest point in many years. In certain segments, sellers are now competing for buyers, instead of buyers competing for listings.
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Median House & Condo Sales Price Trends by District
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The 3 charts below are focused on the districts in which the greatest number of house or condo sales occur. The first 2 refer to house sales and the third to condo sales.
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The condo market is where the best deals are in SF right now.
Please view the links in the text below for more data.
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Thank you for being a part of my community!
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© Compass 2020 ¦ All Rights Reserved by Compass ¦ Made in NYC
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. Equal Housing Opportunity.
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