Even with Gobs of Cash It’s Hard to Buy an SF Home
Let’s say you had a truckload of cash and you drove into San Francisco looking to buy an upscale home. Despite all that cash you might not be able to get one. You’ll park your truck at the curb and wait for the next available house to come up that you really like. What’s happening? The ever shrinking inventory. Not only in SF, but around the Bay Area.
Trulia’s chief economist, Ralph McLaughlin, says in a bizjournals.com interview, “The inventory situation has become so dire in the Bay Area that even cash buyers are likely to have trouble finding homes. It’s tough to buy what’s not there, even if you’ve got the cash.”
Trulia just released a report called Inventory and Price Watch: The Mansions Go Mission in which a premium home resides in the top third of the real estate market price range. For San Francisco that comes in at $2 million and higher, depending on which neighborhood you’re looking in.
Our San Francisco stock of higher-up homes is down by a pretty hefty 23% in 2017 as compared to 2016. The national average for inventory availability dropping is 6%—so we’re way beyond that. McLaughlin says he’s seen inventory in 2017 drop 33% this year.