Four reasons why now is the time to buy and sell in San Francisco
Now appears to be the time to look at homes for sale in the Bay Area, as there are many signs pointing toward an increasingly stable San Francisco real estate market. This is a good time to buy, as rent in the city is at an all-time high. This is also currently a great opportunity to sell a home because inventory is down and homes are selling at (or above) their listed prices.
1. It's expensive to rent
The average price a person can expect to pay in rent for a two-bedroom apartment in San Francisco is $1,900 per month. This is the highest rent has been since 2001 and makes this city one of the most expensive in the country for renters. According to CNNMoney, San Francisco had the third largest increase in rent during the last year as rent prices have increased 11.1 percent in just the last 12 months. Right now, owning a home can be more affordable and will be a better investment in the long-term.
2. Inventory is down
People are moving to San Francisco from all over the world for many reasons, one of which being the many technology jobs being offered in and around the city. For this reason, house and condo inventory is lower than it has been in years. The monthly supply of inventory (MSI) for condos in Q1 2012 was 1.3. This shows how quickly condos were sold after being put on the market and also shows that the local real estate market is strengthening.
3. Houses are selling for the asking price
Because inventory is so low in the Bay Area, buyers are more willing to purchase a home at list price. Approximately 57 percent of listings are accepting offers. This is the highest that it’s been in San Francisco since 2008. Homes in high-demand areas are especially getting eager offers from homebuyers at market value.
4. New developments are underway
When builders start construction on new homes and condos, it's a good sign for the real estate market because it shows a company's confidence in an area. New developments in San Francisco are in the works, including condos in South Beach and a development located on 201 Folsom which will have 641 units. More construction projects are expected to be unveiled as the year continues.