So sales of homes in San Francisco are well, moving like hotcakes, at least relative to the last year or two.
Socketsite reported that “recorded home sales volume in San Francisco was up 50.6% on a year-over-year basis last month“ and that “median sales price in March was $675,000, up 11.0% compared to March ’09 ($608,000) and up 7.6% compared to the month prior.”
Not enough evidence for you that we may have seen the bottom of the market?
Well, how’s the evidence that multiple offers are on the rise again? Out of the last 8 offers I’ve written for clients, 7 properties received multiple offers.
But what’s MORE interesting, at least in my opinion, is that we seem to be seeing a major resurgence of the all cash offer!
Yup. In the last few weeks, the words “all cash offer” are a phrase I’m hearing on a daily basis. Lenders are talking about it. Escrow officers are talking about it. And without a doubt, real estate agents are talking about it.
But what does this all MEAN?
Someone asked me the other day, “Why the hell would enyone ever tie up so much money in San Francisco real estate?” Well, I’m going to go out on a limb here, but it might mean that the folks that are smart enough (or lucky enough) to amass a giant pile of cold hard cash seem to think that dumping all of their dough into real estate RIGHT NOW is a smart investment decision.
Prices don’t seem to be going any lower and with sales spiking upwards and prices creeping upwards, it might be safe to deduce that the bottom of the SF housing market has come and gone.
I’d love to hear from some of you cash buyers, or even agents with cash buyers whether my theories are sorta correct or completely far fetched. You can drop a note in the comments, or if you want to keep yourself anonymous, email me.