Second Quarter, 2008
San Francisco’s residential housing market continues to defy gravity. When most of the nation and some of the Bay Area is feeling the impact of the credit crisis to varying degrees, our desirable neighborhoods continue to prosper. The first quarter of this year saw a continuation of residential property appreciation in both single family homes and condominiums/TICs.
Multiple bids are still the norm for well prepared and priced properties, due primarily to the ongoing extreme shortage of inventory that we hope will be eased by increased new listings this Spring. Additionally, multi-million dollar TICs (tenancies in common) are now becoming more common in the City, as even the highest end buyers are becoming familiar with this form of ownership.
Our investor clients — from larger developers to individual renovators — continue to seek exciting new projects, further indication of the strength of the San Francisco residential property market. The decline of the US dollar abroad has also attracted savvy investors from Canada, Hong Kong, Dubai and Europe. These investors are even less price sensitive than most San Franciscans — and they buy only the best.
The significant increase in the conforming mortgage loan ceiling to $729,750 will help some borrowers, but most of the buyers of north side properties are facing prices too high to take advantage of this wise federal economic move. In general, mortgage rates are expected to remain low or decline further in this presidential election year.
The current rapidly moving market creates a time when market savvy and experience make all the difference in the world. Experience and knowledge can pay dividends to sellers and lack thereof can put buyers out in the cold. Having the personal advice and dedication of a well-informed Realtor® will make all the difference.
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