2015 Year End Market Stats for Central Close in Neighborhoods of San Francisco
Happy 2016! We hope that you had a wonderful holiday season. Behind the scenes the Spring market is already ramping up and 2016 should be an interesting year for SF real estate. The last few years have been a time of crazy growth for SF real estate. In this issue of our quarterly update, we've provided a market analysis for 2015 as well as a look back at the market for the past 5 years. We hope you find this helpful (and we hope you've done well!)
Last Fall, we saw a shift in the red-hot sellers market. Whether it was seasonal or a marked shift remains to be seen and this Spring will be telling. If this shift continues, we should see some noticeable changes in the market. Choosing an agent that understands the subtleties of your neighborhood and can provide expert guidance on proper preparation, staging, pricing and marketing will be vital. Below are some of our predictions for 2016. As always, get in touch to discuss how we can help take the sale of your home from Good to Great.
Our predictions for the new year:
Price growth will probably continue but most likely at a slower appreciation rate than we saw in 2014 and 2015, maybe flattening out in some areas. Neighborhoods in the core of the city will remain the strongest markets.
If inventory increases (we think it will) buyers will be pickier than they have for the last few years. They will be less willing to 'take what they can get' and more likely to keep looking. Market prep, top notch staging and a strong marketing plan will be critical to achieving the most successful sale. Properties that don't 'check all the boxes' will have to work harder to stand out.
Super desirable properties will still be popular with multiple bids and over-asking closes. Inventory will be tight for properties that people want but there will be a lot of Grade B and C properties as late-comers to the party try to jump on the tail end of the super hot seller market.
Marketing strategies will change. Last Fall we saw 'offer dates' begin to go away on many properties as competition waned.
We’ll see greater price accuracy from list price to sale price. Sellers will be pricing their home closer to the price they hope to get. Pricing your property correctly will be even more important as overbids become less 'the rule'.
For buyers or those trading up: This year could be a great year to look for a home. If inventory increases, competition should lessen considerably. There should be some great opportunities for buyers, especially people who are well prepared, know what they want and are willing to jump in when the right place comes along.
New lending practices will mean that escrows will take longer.
Everyone will be waiting to see what the Fed will be doing and when rates will go up.
