First, I’m not exactly sure if the happy hippie in the picture has anything to do with San Francisco real estate, but I guess San Francisco IS the birthplace of the hippe movement, so maybe it fits in somehow.
Second, I hope you noticed that the title to this post rhymes – I put a lot of energy and effort into that little bit of poetic verse for you, my loyal readers.
And third, I think there’s good news happening in the SF real estate market. Now, feel free to take the title of this post with a grain of salt (or a couple of grains of salt followed by a shot of tequila and some lime) – but I think that there might be a decent housing market in San Francisco on the horizon.
And no, I haven’t started taking shots of tequila myself. I’ve spent the morning at the Zephyr weekly sales meeting where we spent some time tossing around our impressions of what’s really going down in the town.
And what pray tell gives me the nerve to be so damn optimistic today about the market? A few examples:
Falling Interest Rates – And I mean FALLING! Today, New Source Financial threw out some rates for to let us know how things are going. Here are some numbers to ponder.
Conforming Loans ($417,000 and below)
30 year fixed: 5.25% with 1 point/ 5.75% with no points
15 year fixed: 4.875% with 1 point/ 5.25% with no points
5/1 arm: 5.625% no points
Jumbo Loans ($417,000 to $2 million 80% LTV)
30 year fixed: 6.5% with 1 point/ 6.875% with no points
15 year fixed: 6.0% with 1 point/ 6.25% with no points
7/1 arm interest only: 5.875% with 1 point/ 6.125% with no points
5/1 arm interest only: 5.625% with 1 point/ 5.875% with no points
Frankly, these are some kick ass rates. And if you have good credit, good income, and a decent down payment (it could even be 5-10%), you CAN afford to buy a home.
Not to mention that economists predict that the Federal Reserve may cut rates YET AGAIN before its next scheduled meeting on January 30th. If that’s not good news for home buyers, I don’t know what is.
Hot Properties are SELLING!: And they’re selling with a lot of interest. In fact, several of the homes on yesterday’s broker tour in San Francisco were ALREADY SOLD after just a few days on the market. Granted, most of these where in the high end market of SF real estate, but the low end had its fair share of activity too. In fact, I just put in an offer for a client on a place that was priced well, and received 5 offers, all above asking. We came in with a very strong offer, yet I’m still not sure if it was strong enough to beat the competition.
The Buyers are Back!: Buyers are back out and trying to buy! And I’m not just talking about my clients either. At today’s sales meeting, most agents have buyers that are ready and eager to buy, buy buy! But it’s the same old San Francisco story – there’s just not enough good inventory out there.
To Recap: So interest rates are down meaning that buyers can afford to buy homes again. Properties now have multiple offers again and buyers are ready to buy again, which all boils down to the fact that it’s unlikely that the San Francisco real estate market will fall apart, and in fact, it seems that it will be all great in 2008!
So if you’re looking to sell a home, there will be buyers for it. If you’ve bought your house in the last few years, don’t expect to make money on it. But if you bought your house several years ago, and it’s well maintained and in a desirable location, you will get a decent return on your original investment. Contact me and I can tell you what your home might be worth in today’s market.
And if you’re looking to buy a home, there WILL be homes to buy, and the interest rates will be LOW. If you’ve been sitting on the fence and waiting to buy until prices hit rock bottom, you might reconsider your position, because with interest rates heading back down, property values WON’T be falling in SF and at least here in the City, you won’t be able to get that “steal of a deal” you’ve been fantasizing about. But you will be able to get that HOME you’ve been dreaming of, along with all of the benefits that property ownership carry with it. Contact me and I can help you decide if NOW is the right time for you to buy a home.