Many reports state the best time to purchase a San Francisco Bay Area home is around 2023. The published report by Realtor.com says that buyers can grab some hottest properties in the region in the current year in the weeks between September 25th to October 1st, In the fall season.
Alternatively, the town is often in the news for people paying high rent to live in boxes, the tech industry, and the homeless problems. It makes you think about how or why anyone lives there. Yet there are positive signs about the San Francisco housing market. Let’s read to find more.
The article below explains the concept behind why the region has property prices soaring with buyers still willing to line up for it. It also highlights trends in the real estate market that make 2023 a perfect time to purchase new homes Bay Area.
Reasons Why Properties Are Booming
Here are recent developments for the current year for the Bay Area real estate from which buyers easily benefit:
Sellers Are Motivated: In 2020’s second half and 2023, house sellers in Bay Area had a lot of bargaining power. Back then, buyers fiercely competed with one another because of record-low inventory levels. However, it also has changed. As of late summer 2023, we see a high price reduction percentage in the real estate market. It means that in the current year, many sellers are willing to lower the asking price to draw the attention of buyers.
Slow pace: In the previous 20 months, buyers in the Bay region struggled to update them with the local property market. Newly listed houses were generally flooded with offers a day after listing. As an outcome, buyers had little time to consider seller negotiation or options. However, going forward, we notice a slow pace in the Real estate market in the area.
More Inventory: according to a recent report, the total property listings in the area had a staggering increase of 40% from the previous year. As an outcome, Bay Area buyers can have a simple time finding and buying a house in the current days. Inventory growth can continue through 2023 end and into 2023. When it does, the market shifts in buyer friendly direction.
Why 2023 Is The Best Time
Earlier, Realtor housing analysts made a report identifying the hottest time to purchase a home in the country. Their analysis shows that the best buying time for Bay Area home and nationwide is from September 25th to October 1st. Researchers determined that the buyers making a purchase around that time get more listings available for selection. They also benefit from low buyer completion and low seller asking costs.
In a straightforward tone, early fall is a perfect time to purchase as it increases success chances. When you’re flexible on timing and budget for high rates, early fall is a perfect time for securing a home, with many factors aligning to make the time’s best in terms of competition and price. It is mainly true for first-time buyers and others who sell a house at this time, similar to their purchase.
Buyer-Friendly Housing Market
According to stats, the first fall week would be better buying time. However, it is also possible to notice buyer-friendly conditions for Bay Area real estate extending till 2023. Buying a Bay Area house following challenging conditions for two years is straightforward, with many ongoing developments.
The good thing is that there are a lot of homes for sale in the current year, which is a lot more compared to the previous year. Additionally, buyers get negotiation leverage these days more than those who purchased in the last year.
Whether To Invest Or Not?
Should you think of investing in San Francisco properties in the Bay Area? Most investors are confused about whether this sums up as a fruitful investment as a two-bedroom house is available at a median price of $1.35 million. Such high costs are impossible to manage for families. There is some good news with evidence-based information for people who want to invest in properties in this town. If you can afford it, it’s an investment that will continue fetching you great value over time.
Because of 2023 low-interest rates, many buyers had certain instances where houses were sold for $1 million over the asking price. Let’s talk about San Francisco and the surrounding town before discussing what is there for homebuyers and investors. Around 900,000 or more people live in the town.
Why Is San Francisco Housing Expensive?
Firstly, California has a consistent housing shortage because of land limitations. Most towns like San Francisco fail to meet regional housing requirements. The new construction permits lag because of community resistance to blocking new housing. The economy is strong, and the number of jobs has increased in 50 years. However, due to the tight housing supply, San Francisco house prices grow quicker than incomes.
Migration To Outer Areas
However, with the rising prices, many opportunities are available elsewhere. Among the main themes in 2023 was higher migration in the core region by those in hybrid roles or working from home. Remote work is to stay and is now the new normal.
Outer Bay Area ring is turning into a place where families and millennials can afford to set their roots. Such areas from Tracy, Lathrop, Gilroy, and Napa counties will continue thriving.
In towns like Tracy, getting a house at half the price of the East and South Bay areas is possible.
Additionally, developers must start packing great value and amenities into homes and master-planned communities in the outer ring, focusing on sustainability, technology, and wellness, from parks and recreational areas to automation features vital to cater to all home buyers’ needs and wants.
A trend that experts are also expecting soon is tandem garage resistance and expanding living spaces. Since the pandemic’s onset, parking has been less of a concern for most buyers with only one car or none.
In 2023, regardless of the provided perks by remote work, Bay Area core buyers continue paying a premium for accessing amenities and desire to be linked with a walkable lifestyle, urban settings, entertainment, dining, and culture. However, in 2023 people became concerned about the prices and volume.
As an outcome, we also did see sales activity slowing down in 2023 second half in the market segment. The good news would be that we saw a great workout in the year’s final six weeks. As more forecasters saw continuous growth, 2023 would be the year for people who want to settle and start families in the region who won’t have to fight and be priced out, among others.