Will Consumer Confidence Dictate the 2019 Real Estate Market?
The New Year is well underway and March will be here before you know it! I'll be glad when the rain subsides and we can enjoy a bit of sunshine again.
The good news for 2019 is that the stock market came roaring back after the sharp drop in December and The Fed Chair, Jerome Powell, has indicated he will have a patient approach to further rate hikes and did not increase rates in January of this year. Additionally, the U.S. economy continues to be strong with historically low unemployment and steady wage growth.
The first statistics for the 2019 San Francisco real estate market are in and they were generally mild for the start of a new year but there appears to be some level of uncertainty with some mixed signals. The inventory levels for Single Family Homes (SFH) was down -16% while prices were up +3.6%. However, the condo inventory was down -22.9% but at the same time prices were down -4.5%. Days on Market was up slightly for all property types while pending sales are down.
So although economic indicators are strong, a combination of housing affordability coupled with consumer confidence may play a big part in this year's market. Keep in mind, we are only 6 weeks into 2019, so we may well have another strong year in our real estate market!
SAN FRANCISCO MARKET SNAPSHOT
January Stats 2019 vs 2018 YOY