Q1 Market Update
The Pre-IPO Frenzy hits San Francisco!
The first quarter started slowly out of the gate with inventory levels down and a overwhelming uncertainty about home values given the volatility in the stock market and projected interest rates hikes at the end of 2018. However, once the New York Times article hit about the upcoming IPOs and anticipated new found wealth in the Bay Area, we have not looked back. Properties are selling at record prices and I've seen some home sales that appraisers could not yet justify - but buyers step up and the escrow closes anyway.
The current market statistics for March 2019 from the San Francisco Association of Realtors are not yet indicative of what we are seeing in the market right now. To help understand the market shift upward, I selected a 12 month average sales price chart that will help show how the market has been trending and the noticeable upturn at the end of Q1 2019. I anticipate the upward trend will continue given my experience of multiple offers and pre-emptive offers on most single family homes and many condos. I just closed two homes that had 10 and 11 offers and another with a pre-emptive offer $500K over the list price. I hearing the same experience from my colleagues. It appears to be a home buying frenzy!
SAN FRANCISCO MARKET SNAPSHOT
12 Months Statistical Trends