Real Estate Column - Buying is Booming in Local Market

By Rita Villavicenci-Schmid and Roxana Melgarejo

Finally, some great news for the San Francisco market!

San Francisco median home sale price is continuing toward an upward trend. The median sale price for Single-Family homes has gone up to $849,00 with an average list price of $1,195,164. The average days on market is 82 days also heading toward a downward trend. The median price for single family homes in the 94114 zip code is $1,449,000, $733 per square foot and average days on market trending down to 109 days for single-family homes. The median prices for condos is $699,000, $595 per square foot and days on market to 84 days. So what does this all mean? Higher sale price and lower days on market means buyers are here and they are buying.

According to the most recent Market Focus report issued jointly by Rosen Consulting Group and the San Francisco Association of Realtors. Healthy sales activity, driven by low mortgage rates, tax incentives, and attractive pricing continued to reduce the market’s for-sale housing inventory in San Francisco in April. Even during this economic uncertainty with the fluctuations in the stock market and the global economic instability with the Euro, we still manage to see some positive upward trend for the San Francisco market. There has been an increase in the demand for single-family homes and condos in San Francisco. We can account for this increase due to the improvement in the local economy that has driven buyer interest.

So what are buyers looking for in this market? Being in real estate for over two decades combined, we have seen trends come and go. There is no doubt that San Francisco buyers are very savvy. What we have noticed with the current change in climate, culture and ways of life is that there is a bigger trend toward a more green and practical approach. Buyers tend to seek more energy efficient appliances and home insulation both during summer and winter seasons respectively to keep the desired temperature. The buyer ultimately achieves a cost effective electrical consumption. In addition, we see that children’s playground and walking paths have become more essential in making once quality of life as an integral factor in choosing the buyer’s home. While large kitchens are still a must have, added cabinetry extending upward toward the ceiling and efficiency has become very popular. Also, unlike in the past where formal dining rooms were considered important, there is a shift into dining and living combo configurations, which has become more appealing. We have also noticed that buyers will accept less square footage as long as they are livable. However a 10 by 10 bedroom is no longer acceptable.

If you are a seller, taking into consideration what buyers today regard as more important, can help you sell your home faster and can more importantly increase your sales price. Sellers need to take into account these pointers so as to properly market, stage and sell their property. Hiring a realtor that can advise you is best. Sure, pricing is key, but knowing your buyer is a strategy that can also help. Now, you can truly enjoy the rest of your summer.

Rita Villavicencio-Schmid and Roxana Melgarejo are realtors with Dot Real Estate. Rita can be reached at (917) 892-1212 or rschmid@dot-re.com and Roxana at (415) 410-8468 or rmelgarejo@dot-re.com.

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