Post Labor Day Real Estate Market is Weather Bell for San Francisco
The next two weeks will be a telling time for how the San Francisco market is performing. In a hot market, well priced properties generally run through a 10–14 day marketing cycle before setting a bid date and fielding offers. The right homes at the right price have moved at a fast clip over the summer months. Now we will see if an increase in fall inventory can be rapidly absorbed.
Interesting to note: since September 1st, 407 new listings have hit SF MLS. One hundred and ten listings have changed to contingent. Forty five listings have gon back on market. Prices on 52 homes have been reduced in an effort to move the properties.
The biggest month for new listings in the past 2 years was September 2015 with 789, so it looks like that figure will be exceeded this September—a clear thermometer on the bubbling activity in the market.
I generally track the market in an anecdotal fashion, and pay attention to the new listings in the areas immediate to my own listing. I also take note of properties that would be of greatest interest to my current and prospective buyers. I have a listing at 10 Levant in Corona Heights; since Labor Day, ten listings have come on nearby that could turn a buyer’s head away from mine. Fortunately, we took offers last week (there were four and we went well above asking).
Studying what goes into escrow also helps me anticipate whether I will have competition for the listings I have coming up. I have a studio downtown going to market this weekend at a great price point ($479,000), but there are four other entry-priced condos new to the market since Labor Day which could be decent trade offs for those checking out my art deco beauty.
Knowing my competition and knowing how fast similar places are going into escrow also informs my decision on whether to set a bid date for a home I list, or to recommend that we take “offers as they come.” Both strategies can yield good results, but it’s important to know which one to choose. Taking offers as they come for a hot property can leave money on the table. Setting a bid date and receiving no offers can be leave buyers wondering if there is something wrong with the property. If it continues to sit instead of sell, this perception only grows and a home can wind up selling for less than expected.