Max’s Take on the Market
First off I wanted to welcome everyone to 2018 by taking a look back at what happened in 2017. At the beginning of the year there was actually quite a bit of trepidation and uncertainty in the San Francisco real estate market. It was the beginning of a new reign in government but more important there was hesitancy due to the robust recovery since the great recession. I had clients in the finance sector who were worried there was a major correction on the way. Some were pushing to get their property on the market to get ahead of the potential downward price pressure. As we started pushing thru the first and second quarters of the year, the market was not slowing down but it was not picking up either.
Properties were selling but not with multiple offers every time. There were some properties which come on the market expecting to sell for multiple offers, had multiple disclosure packages out and ended up having no offers. This was not necessarily the case in 2016. However, inventory was not increasing, deals were getting done on the properties which were well priced and presented. Suddenly, the buyer market began to realize that there did not seem to be a correction happening and that the time to buy was now. The second half of the year ended up with quite a flurry of market activity with many high-end homes trading which had been languishing on the market.
What does that mean for 2018? Can the market continue to hold on?
Will there ever be a buyer’s market in San Francisco? How will the new tax laws affect the market? Moving into 2018 we still have a lack of inventory which will continue to be a problem for buyers. I believe the strong end to 2017 will spill over to 2018. Our local job market continues to be strong with numerous large companies signing new leases for huge amounts of office space. There appears to be a whole host of companies lining up to go public. While I temper the rate of appreciation, I do see another robust, active year in the San Francisco real estate market with single family homes leading the charge. There are a decent amount of condo developments in the pipeline but not enough to feed the need for housing. While the market looks to still be in the sellers corner, there could be some deals out there for the patient buyer who is ready to strike on a property which has been mispriced or lacking in presentation. San Francisco has always been a boom and bust town and 2018 should prove to be an exciting one! I look forward to being properly right in the middle of it!