I’m seeing substantial changes in the San Francisco housing market that I wanted to share with you:
Buyers postpone purchases. Many buyers seem to be delaying decisions until after the election; they are also watching the impact of the bailout program. Such behavior is reflected in open home activity, which has fallen off in most Bay Area markets (with some exceptions). The bulk of open homes are seeing fewer visitors. There are the anomalies like the San Francisco Lake district duplex listed at $1M that garnered 50 groups, and the Cole Valley duplex priced at $1.85M that received 26 visitors.
Multiple offers are down. The number of multiple offers has declined, particularly in the lower price ranges. Those homes receiving multiple offers are either priced well below the competition, or presented exceptionally well. A good example of this trend is the Inner Richmond 2BR/1BA Edwardian flat listed for $765,00 that received five offers and sold for well over asking. Other multiples include those in highly desirable areas, such as Forest Hill. A 4BR/3.5BA home priced at $1.795M received three offers.
Price reductions are up. These are more commonplace, as motivated sellers are being forced to adapt to current market conditions. Even in areas that have been solid this year (i.e., Noe Valley), we are beginning to see more listings coming down in price.