The San Francisco housing market is making headlines. As the price of goods and services has gone up across the United States and California, San Francisco home prices have plummeted.
According to Zillow, the average home price in San Francisco declined by 12.9 percent during the last year. There are many reasons for the decline including increased mortgage rates and more college graduates leaving the area seeking more affordable housing elsewhere. For example, the New York Times reported that the San Francisco metro area lost 25,000 college graduates in 2021. With lower prices, buyers may consider now as the best time to act. Even as the average home price in San Francisco hovers at around $1.2 million, 48 percent of homes are selling for under the list price according to Zillow. Real estate experts’ tips can help buyers stay ahead of the competition in this complicated market.
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Hire an expert in your target market
Unless you are a real estate expert in your own right, hiring a professional real estate agent should be an essential part of your journey to buying a home in San Francisco. With HomeLight listing more than 8,000 real estate agents in San Francisco, finding the right fit may seem overwhelming. However, by asking friends and colleagues and targeting your specific market and neighborhood you can find a professional with the expertise to help you find that dream home and make a bid that a seller will accept. One strategy to pick the best real estate agent for the job is to start with a pool of five to 10 agents for phone interviews where you ask questions about their experience, timeline, costs, and areas of interest.
Create a cushion in your budget
While San Francisco home prices may be on the decline since a year ago, prices are rising month over month, and it’s hard to predict if those numbers will stick. Part of creating a budget for your home is being flexible. You never know who you might be up against when bidding for your dream home, especially with cash offers and short selling timelines such as 17 days to pending as Zillow reports. That means your budget needs to have flexibility to help you stand up to the competition. Other factors, such as your credit score, and proof of employment can support your position as an ideal buyer.
Know your must-haves and nice-to-haves
Knowing what you need will make it easier to find a home that will work for you. The San Francisco Bay Area housing inventory is considered low, with a two-month supply reported in March 2023 according to US News and World Report. A four to six month supply is ideal for a balanced market, meaning that competition may mean you end up leaving some amenities aside. A trusted real estate agent can advise you about the best way to adjust your expectations to find that ideal home.
It’s an interesting time to buy a home in San Francisco and following these expert tips can make the process easier to navigate.
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