San Francisco is in the middle of a home buying frenzy, and if you’re looking to sell in this area, right now is the time to do so. Homes are selling for more than they were this time last year, and they’re not staying on the market longer. This trend could continue throughout the year, but right now is prime selling time.
Decrease in Housing Inventory
Right now, there are 492 homes on the market in San Francisco. Last month there were 436. There was a 13 percent increase in homes available during this one month time period, but the more interesting number comes from last year’s inventory. Around this time in 2012, there were 712 homes on the market. The difference between last year’s inventory and today’s inventory is 31 percent. This number shows a large decrease in properties for sale, leaving buyers with much less to choose from.
Steady Increase in Home Prices
Home prices took a slight dive from last month. Right now, the average price sits at $795,000, which is a 9 percent decrease from last month, when the median price was $896,000. Although this is clearly a decline, again, this trend does not seem likely to continue throughout the year, and looking at last year’s median home prices gives a better picture of this metric. In 2012, homes sold for $699,000. The 14 percent increase from 2012 to 2013 shows a small, but steady growth pattern in this area.
Homes Being Sold Quickly
It doesn’t take long to sell a home in San Francisco. Houses are on the market for an average of 16 days, compared to 18 days last month, and 32 days last year. The difference between last month and today is 11 percent. The difference between last year and today is 50 percent. This is a big deal in terms of who’s dominating the markets in this area right now, and these trends show that it’s clearly a sellers’ market.
The median dollar per square feet is currently $620, slightly down from a month ago at $670. A year ago, the average dollar per square foot was $529. The difference between today and last month is 7 percent. The difference between today and last year is 17 percent. Again, a clear indicator that sellers have the advantage here.
California Interest Rates are Low
The good thing for buyers is that the California mortgage interest rates are at 3.34 percent. This rate is in line with the national average. A month ago it was just under 3.51 percent. Last year’s rates were over 4 points higher at 3.7 percent. Although home prices are up, with the current rates, purchasing now would be ideal for homeowners.
The homes in San Francisco aren’t cheap, but they’re flying off the market at record speeds. Homeowners are taking advantage of this trend, and reaping the benefits at the closing table. If you’re looking to buy in the area, you should do so while the rates are low, and before the home prices increase again, which they will more than likely do. It’s a sellers’ market in San Francisco, and that doesn’t seem likely to change any time soon.
