Continuing our analysis of Paragon’s first quarter 2015 update
Yesterday we started a discussion of Paragon’s First Quarter 2015 Update, which highlighted such basics of the San Francisco real estate market as appreciation (in a word: up) and inventory (in another word: low). Let’s continue that discussion today.
The heat of our market can further be deduced by the vast majority of sales in March, which went at a rapid pace without price reductions, averaging an impressive 10 percent over asking price. However, keep in mind that there were some price reductions prior to sale, and these took three times longer to go, with a significant discount to the original list price. Also, it’s important to remember that not every house sells. A hot market may translate to competition, but it doesn’t mean that buyers will pay any price that the seller desires.
Now let’s look at our local demon: inventory. What we’re finding is that by far the biggest factor behind our declining inventory is not that sellers aren’t selling, but that demand has skyrocketed over the past three years and what we’ve got on the market isn’t keeping up. Home supply has been shrinking thanks to the competition between a heightened number of buyers and inventory that just can’t increase quickly enough.
Interested in comparing Bay Area county markets? We’ve got a set of analyses excerpted from our recent article, “Taking the Temperatures of Bay Area Real Estate Markets.” The chart that accompanies this article speaks to that analysis.
As I’ve said before, numbers are just that: numbers. Everyone is an individual and each situation is unique. I want to work with you on your own terms to meet your particular needs. Give me a call today and let’s talk about how we can help you with your own piece of Bay Area paradise.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com