2021 Real Estate Trends in San Francisco
Despite rising home values and cost of living increases, San Francisco remains a popular city to live in, and the real estate market is reflective of this appeal. Single-family homes are currently selling 14 days after they are put on the market and sold at a 3.4% increase year over year.
If you’re thinking about moving to the Bay Area or swapping your renters status to buyer in 2021, you’re not alone. Being up to date on the market trends can help you get a better place for a better price.
Renters Leaving the Bay Area
Due to COVID-19 and remote work orders, many renters left San Francisco for more affordable areas of the US or the surrounding suburbs. Zumper’s National Rent Report showed that rent prices dropped significantly, up to 16%.
Data from the National Association of Realtors shows that in August of 2020, the number of home listings in San Francisco reached its highest point in at least four years. While renters were leaving, homeowners wanted an upgrade. They sought out homes with more space, indoor and outdoor.
What San Francisco Neighborhoods are Trending?
Even in a mixed market, demand for homes in certain San Francisco neighborhoods is skyrocketing. Trending neighborhoods usually offer more things to do, more space, and thriving job markets, but they are usually more expensive too. You must decide what must-haves you’re willing to sacrifice for your budget.
Check out this roundup based on 2020 data from the San Francisco Business Journal:
The most popular neighborhoods for single-family homes were Sunset, Parkside, and Golden Gate Heights. The least popular were Pacific Heights, Cow Hollow, and Marina.
The hottest condo markets were Noe, Eureka and Cole Valleys, Richmond District, and Lake Street.
Sunset, Parkside, and Golden Gate Heights averaged sales prices 9% higher than listing prices, Lake Shore, Ingleside, Merced Heights, and Oceanview averaged 7.4%, and Bayview, Excelsior, Crocker Amazon averaged 5.8%. This indicates a seller’s market (lots of buyers).
When Should I Buy a House in the Bay Area?
The San Francisco real estate market changes daily and varies from neighborhood to neighborhood. While it’s ideal to wait until your chosen neighborhood enters the buyer’s market status, that’s not always practical.
In general, spring is the most popular time to buy real estate in San Francisco. This is because many families move in May so their child can finish one school year and seamlessly start the next in the new city. With many buyers in the spring, it might be wiser to wait until wintertime to buy a home in San Francisco. There may not be as many homes to choose from, but sellers may be more open to negotiation on the price.
Ultimately, now is a great time to buy a home in San Francisco. Inventory is rising and median home values are falling, so entering the market now will almost guarantee appreciation as the market normalizes post-pandemic.
Of course, the best way to find your dream home in San Francisco is to work with a knowledgeable, local real estate agent. With plenty of personal and professional knowledge about the Bay Area, I can guide you through the pricing and housing trends to make sure you find the right deal.
