Bay Area Market Changes: Where Do We Go From Here?

Luxe SF Top Agent Panel Update today, June 24, 2021.

I just wrapped up watching a great panel of San Francisco’s top-level producers and one agent on the peninsula (Silicon Valley) who gave insightful information on the subject of “Where do we go from here?” The discussion ranged from buyer burnout that, everyone agreed started two weeks ago, to homelessness and its effect on real estate values. All agents are having their best year ever in 2021 with all but one of the agent panelists stating the 2020 Pandemic year was their highest sales production in their careers. After all of the talk about homelessness in San Francisco, it has not stopped buyers from coming back to the City. They are returning in large numbers and all price points are selling in large overbids from the list price from condos under $3M to single-family homes between $8M – $20M. Agents also said they were going with the flow of the buyers and are bringing listings on for the summer months. If sellers are unhappy with their offers, they will take them off the market and bring them back in mid-August, once everyone is back from summer vacations.

Buyer burnout or fatigue always happens at the end of the Spring Market which coincides with summer vacations starting July 4th up to mid-August. The momentum picks up the first week in August when families return to enroll their children in schools. The energy level is quite high again after some quiet summer vacation moments.

Regarding homelessness, many other agents commented today that our homeless situation is not as bad as Los Angeles and nearby counties. The panel all thought that with employees returning to their jobs in downtown San Francisco that this could help in reducing some of the encampments in and around the deserted pandemic buildings. Of course, the homelessness issues on our streets will not be solved by more employees returning to downtown San Francisco and will take some real leadership to resolve.

International buyers are back! Buyers from across the globe have returned to San Francisco starting two weeks ago according to the agent panel. Most of these recent international buyers were from India and Singapore. It appears the International money is heading to San Francisco once again after a two-year absence.

Every agent on the panel was very bullish on their 2021 sales production and expect a robust Fall Market (August through the end of the year). As for me, my listings are still selling $350,000 – $650,000 over the list price. There is so much money in the marketplace from cashing in on stock options after the handcuffs come off the employees whose companies had successful IPO’s in 2018. After two years, these stock-rich employees do get to cash in on a certain allotment of their stock. They are ready to buy their home and hence the large final sales prices compared to the list prices.

If you have considered selling in 2021/2022, there truly is no time like the present to start planning. Contact me to find out what your home is really worth in this incredibly vital seller’s market.

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