February 2020 Market Update

Happy Valentine’s Day folks!

Love is in the air and with that comes new listings hitting the market and the swarms of buyers out looking for a home. Now that the sun is out, the market is heating up AGAIN. Open houses that I have been visiting over the weekends have been so jam packed with would-be buyers that it’s hard to get around.

There’s a lot of new inventory, but all things considered,  it’s still pretty slim pickings. A good variety of homes are being listed, from fully turn key and remodeled to complete fixers and probates. Offer dates are back on the agenda as listing agents are making buyers wait in order to garner multiple offers. Once in a while I will get lucky and a listing agent allows me to submit a pre-emptive offer, but typically, they are making everyone wait.

Teaser prices are also back in full force. In Daly City and in the Sunset District of San Francisco, the popular list price seems to be $998,000 with these homes selling upwards of $1.15M all the way up to $1,550,000. Buyers and Sellers often ask me, “Are people still overbidding like crazy right now?” My answer is "yes and no". Buyers are overbidding, but not in the sense of “crazy overbidding” way over the market value.  Overbids are necessary in this market since many of the listings are grossly underpriced to attract as many offers as possible. For the first time home buyer just starting out, I can’t stress enough how important it is to know your market before heading out to search for a home. Properly setting expectations and looking in a feasible price range to hit your target will save you a lot of time and heartache.

In terms of new developments, things are heating up with them as well. I know this because builders are cutting back on their commissions and incentives. The sales people at new developments in areas and price ranges like Pittsburg ($750k and below) and Dublin ($1.2M and below) and San Jose ($1M and below) are now giving $5k credits for closing costs in comparison to the $10 or $15k we were getting in the winter, and commissions have gone from 2% to flat fees or 1%. “Sorry, they’re basically selling themselves right now” is the common answer I get from the sales people. 

More and more buyers are considering the move further out for new homes as Bart Stations are expanding to San Jose and Brentwood.

We are in for another upswing. If you want to buy or sell a house, this is the time. :) I honestly wish it slowed down a little, but it is what it is…. rates are excellent. I just did my 2nd refinance in 12 months because rates have gone down so much that it was worth it. I got a 3.65% interest rate for an investment property (down from 4.25% on a 20-year note) and a 3.125% rate on a 10-year fixed for my primary. If you have any questions or concerns about the market or need a referral to do a refi, contact Hatch Realty Group today! We are happy to help in any way we can! 

PS:
I would like to mention, lots of landlords have been reaching out to us lately to place tenants and manage rentals. Those are going pretty fast too. Rental market is strong, so if you want to buy investment property, I can assure you, there will be no problems finding a tenant. Let me know if you want to know more about this as well. 

Have a wonderful Valentine’s Day and long weekend ahead! Thanks for reading!