March 2021 Market Update
/MARKET UPDATE
March Madness blazed right past us with a smoking hot Bay Area real estate market. Homes are flying off the shelves in record time with the shortest median days on market in 30 years and for record setting prices. We've seen double digit appreciation in 9 of the 11 Bay Area counties in the past 12 months.
I’ve mentioned time and time again that the pandemic has caused people to rethink how they want to live. Being stuck at home coupled with the historically low rates gave folks the nudge they needed to take the steps needed toward making a move. Whether they’re first-time home buyers, investors, or people looking to upgrade, downsize or relocate, all types of people across the board are entering the real estate market. The luxury and vacation home market has seen sharp increases and it continues to rise. Interestingly enough, the highest priced counties, San Mateo and San Francisco saw the lowest appreciation rate, 8-9% in comparison to some other counties which saw a 20-26% increases in median prices. Condos in SF, on the other hand, actually saw a decline of 1% this past 12 months, reaffirming my belief that people are moving out of the city, specifically out of condos, in search of more space. This month alone, we sold 3 homes with swimming pools in Solano and Contra Costa Counties. People used to think that pools were a liability, now it’s on many’s “must have” lists.
Despite projections that we are in for a recession, what I noticed about many of today’s buyers is that many people have actually benefitted financially from the pandemic. A year of curbed spending and change of lifestyle made all the difference for the middle class, making home ownership more feasible for those who don’t already own property and upgrading possible for those who already own. The lack of commute and childcare expenses and limited spending on dining and entertainment have actually made a substantial increase in people’s pocketbooks and they are looking for something tangible to spend it on.
Last month, there was a lot of concern for homes not appraising to value due to the crazy overbidding taking place in the marketplace. When rates were at 2.5% people were willing to pay al little more just to lock in the lower rates. Now, rates have gone up a bit (average 2.85 - 3.125% for a 30-year jumbo loan) but the market is not relenting. We are at our lowest supply of inventory in the past 15 years, but somehow, we are still making sales…and lots of them. With the exception of condos, many of our listings are sold within a week and sometimes even before they hit the market. Median days on market is at its lowest in years. Competition is tight and the market is moving fast. Last month I discussed the strategies people were implementing in order to get their offers accepted and how to go around low appraisals. Now those homes have already closed and the higher benchmark in pricing has been set. The only appraisals that are coming in low are for condos, so if you are a buyer, think about leaving that appraisal contingency in place as a safety net.
This first quarter was amazing for us at Hatch Realty Group. We surpassed our semi-annual sales goal in the first quarter and currently have 14 escrows in contract to close in April. This is blowing my mind. Its crazy to think this is the tightest market we’ve seen in years…even before the 2008 crash, but we are still extremely busy.
Now that many people are vaccinated and we are slowly getting back to normal, there is growing concern about what will happen to the real estate market once the eviction moratorium is lifted. Is the market going to crash when all those homes hit the market? I doubt it. I think there are so many people looking to buy that inventory coming from unpaid rental properties will quickly be absorbed, and likely for a profit. I haven’t seen any panic selling, short sales or foreclosures come on the market just yet. Quite the opposite. From what I am seeing, those selling are cashing in long term investments for a huge profits. Banks are so busy with refinances and purchases that they have raised interest rates slightly in an effort to slow the glut of loans in their pipelines. Seems like everyone these days is either refinancing or trying to buy a home.
Thank you for reading this month’s newsletter. As I always say, every market is different so if you would like more information on a particular market, please let us know. We are happy to give you a customized report of your desired area.
HAPPY EASTER!!!
FOR SALE
530 Chestnut St #308, San Francisco
List Price: $1,385,000 | FOR SALE
1293 65Th St, Emeryville
List Price: $850,000 | OFF-MARKET OPPORTUNITY!
3 Capp St, San Francisco
List Price: $950,000 | FOR SALE
2740 Tice Creek Dr #1, Walnut Creek
List Price: TBD | COMING SOON
201 Harrison #918, San Francisco
List Price: $549,,000 | FOR SALE
245 Gambetta, Daly City
List Price: TBD | COMING SOON!
IN CONTRACT
118 Dennis Dr, Daly City
List Price: $998,000 | PENDING
15226 Lark St,
List Price: $729,000 | PENDING
1188 Dolores St, San Francisco
Purchase Price: $2,150,000 | PENDING
4537 California St, San Francisco
Purchase Price: $2,200,000 | PENDING
325 Kitty Hawk #215, Alameda
Purchase Price: $595,000 | PENDING
1441 Florida St, San Francisco
Purchase Price: $1,100,000 | PENDING
814 S Delaware, San Mateo
Purchase Price: $1,550,000 | PENDING
3287 Guido, Oakland
Purchase Price: $1,575,000 | PENDING
327 Lakeshire Dr, Daly City
Listing Price: $958,000 | PENDING
42 Terra Vista #3, San Francisco
Listing Price: $899,000 | PENDING
1473 Walnut Ave, Antioch
Listing Price: $590,000 | PENDING
2335 Peachtree Circle, Antioch
Listing Price: $599,000 | PENDING
151 Church St, Martinez
Listing Price: $849,000 | PENDING
JUST SOLD
21 Massasoit, San Francisco
Sale Price: $1,205,000 | SOLD
672 FREESIA DR, SOUTH SAN FRANCISCO
Sale Price: $1,725,000 | SOLD
332 Frankfort St, Daly City
List Price: $2,500,000 | SOLD
165 Santa Rosa Ave, San Francisco
Sale Price: $1,150,000 | SOLD
505 Frogs Leap Ct, Fairfield
Sale Price: $580,000 | SOLD
436 Marcie Circle, South San Francisco
List Price: $530,000 | SOLD
467 Casselino, San Jose
Sale Price: $901,000 | SOLD
5404 Cottonwood
Sale Price: $744,515 | SOLD
1219 Versailles Ave, Alameda
Sale Price: $1,005,000 | SOLD
DR Horton Skyline Ridge, San Bruno
Sale Price: $1,825,000 | SOLD
KB Home Westerly, Lot #44
SOLD
KB Home Westerly, Lot #48
SOLD
441 Pintor Way, Oakley
Sale Price: $574,025 | SOLD
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