December '18 - An Increase In ‘Off-Market’ Listings
Nationwide the real estate market is experiencing a slowdown driven by uncertainty, interest rates rising and the impact of our trade wars. We are seeing downward price adjustments and an increase in days on market in most parts of the country (even in Manhattan!).
What is interesting is that this often results in an increase in ‘off-market’ listings and sales, since sellers do not want their listing’s value to be publicly tested. The benefit of this strategy for buyers is that when they have a connected and informed agent, they may be able to purchase desirable properties with less competitive pressure. This could be a good thing for buyers because, especially in San Francisco, there is a scarcity of great properties, so early access can be crucial.
In San Francisco we are also seeing a slight slow down , although we should not forget that this happens every year at around this time. (cont. after graph)
In addition, we see that the average cost per sq. ft. is stabilizing or slightly declining, although this is very much dependent upon the neighborhood. (cont. after graph)
The good news for buyers is that properties are selling closer to the asking price than in recent months. (cont. after graph)
So, what do we think will happen in 2019?
We could be looking back at this winter as a great opportunity for buyers, or as the beginning of a larger slow down. Many of you have heard me say this before: “If you are in this market for the long term, this is a good time to buy a property with a bit less competitive pressure”. Given the relatively small size of our town and the upcoming IPOs in 2019 — Uber and Lyft, to name just two — I continue to remind buyers that desirable properties are still selling quickly and at a premium.
Please reach out if you have any questions.
Have a great week!
Missy Wyant Smit