2021 Market Recap
THE GREAT HOUSING SHAKE-UP! The San Francisco market was driven not by a mass exodus as once predicted, but by the continuing great housing shakeup—a theme you’ll see repeated here. Who moved last year? Everyone: expanding families needing more space, empty nesters re- sizing to settle in over the next chapters, and young buyers who have been living at home for the past two years and saved money for a healthy down payment.
home with a lower 30-year rate. We anticipate this will be the reaction until rates near 4.5% - 5.0%. Interest rates are slow to drop, but quick to rise— acting fast is the answer. COVID The pandemic continues to cause instability in the market on a global level. With the Omicron variant it appears that we are nearing an end of the pandemic portion of covid and are moving toward a more manageable stage. With nearly one in five people, many I know and love, becoming infected with Covid, they are primarily seeing flu-like symptoms and hospitalizations remain low. May this trajectory continue.
Brendon has helped us purchase two homes. Based on our experience with our first home, when we were thinking of purchasing the second property, he is the first person I called. He jumped right in with advice and direction on the steps to take. He knows all the right things to do and has great connections —super important in the SF real estate market. I wouldn’t trust anyone else with the process.
Literally everyone!
San Francisco marked another record-setting year with more than 7000 home sales and shattered records for sales volume, median sale price, and dollar-per-square-foot sales. Demand for personal space drove the market and single-family homes were unstoppable. Predominantly single-family neighborhoods saw the greatest increase, with the Richmond District popping up more than 22% year- over-year from 2020. The condo market appears flat but was quite diverse when looking at specific geographic areas. Central San Francisco’s more traditional condominiums realized gains of more than 7.2% while the high-rise condominiums of South Beach and Yerba Buena increased in price, but with plenty of market share left to recapture from a greater than 20% loss in 2019. As always, an understanding of the micro-markets of San Francisco continues to be very important for success when buying or selling a home.
OFFICE RE-OPENING The San Francisco-specific impact of the
coronavirus is quite simple: “butts in seats”. As offices begin to reopen, we will continue to have office workers return to the city, dramatically increasing demand for homes and housing. Rents will rise and we will continue to see absorption of homes at all price points. Best of Bay Area Always a top tourist destination and a vibrant community to call home, San Francisco continues to be a hot location for a global economy. Be it finance, biotech, tech, retail, or medicine, San Francisco is now and will always be a global destination. We saw many companies shed commercial space over the last two years only to have it reallocated and reabsorbed by other companies. We will continue to see changes at all levels of commercial space, just as we have had in the residential sector. San Francisco and the greater Bay Area are home to great history, amazing coastline, beaches, skiing, hiking, and extraordinary culinary delights. With an esteemed group of major universities, the Bay Area also boasts some of the world’s most sought-after educational opportunities.
Items to Monitor for 2022
NOEL A.
INTEREST RATES Excitement and energy pervade the market as we anticipate the Federal Reserve’s raising of interest rates. After 20-plus years of experience, we know there is a historic increase in prices during periods of rising interest rate increases. Buyers will “throw money at the problem” to lock in a higher-priced
Made with FlippingBook Online newsletter maker