San Francisco Market Conditions
The San Francisco, Peninsula, and Silicon Valley real estate markets have benefited greatly from the Bay Area's diverse economic jobs base.
Trends. Jobs have been coming back to the San Francisco Bay Area for a good number of years following the Great Recession. While Silicon Valley liquidity events and foreign money have driven the market since the market bottomed out in 2009, these drivers still exist but to a more tempered degree.
Rents have been rising but appear to reflect closer to an equilibrium between supply and demand. Interest rates remain at or near historically low rates. Appreciation has continued but shows signs of diminishing currently.
Demographics. The “echo boomers” or children of the baby boomers represent a huge economic force. Many are reaching their 20’s and 30’s and are driving demand currently. These young adults are now getting jobs and renting apartments. Many more will be graduating from college, getting jobs, renting and then buying over the next 10-15 years. Similarly, a huge bulge of children in their teens will follow their older counterparts to drive added household formation over the coming years. After a lull in household formation during the Great Recession, household formation has driven rents up markedly.
With hiring and the local economy driving very strong demand, real estate values have risen accordingly.
Currently Buyers still need to anticipate competitive conditions, while Sellers are advised to position their homes in the best possible light to garner maximal attention and the highest possible price. With over 20 years construction, development, sales and marketing experience, Parc Pacific Ventures agents are uniquely qualified to help Sellers bring their property to market and get top dollar. Parc Pacific Ventures agents provide analytic constructs that help Buyers make sense of the competitive landscape for homes in the Bay Area. For a free consultation, click here.
The condominium market has shown some softness with price reductions occuring sporadically. Single family homes continue to do well, though they are typically seeing fewer offers than they had been between 2013 and 2015...
Home Status Report
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