Have you noticed the shift in the topic on the real estate market?
Just 6-8 months ago the conversation about the market began with ‘How much worse can it get?’ Today, the conversation begins with ‘There are signs of a recovery’.
Earlier this week Bernanke said the deep recession that’s gripped the US economy is “very likely over at this point.” A recent survey conducted by the City Business Journals Network, an alliance with the Business Times, stated that over half of small to mid-sized business owners feel that their prospects will be a lot better in the next 12 months. That is a sizeable increase when just five months ago only a third of business owners felt optimistic about their prospects.
I took a look at recent sales in the MLS (Multiple Listing Service). In San Francisco, from January 1, 2009 through June 30, 2009, 1417 homes were sold or an average of 236 homes per month. From July 1 until now (less than 3 months), 884 homes have been sold or an average of 294 homes per month. That is an increase of 58 homes sold each month. Optimism fuels a recovery just as pessimism fuels a downturn.
I expect we will have a very active fall in San Francisco. Buyers are feeling that optimism and writing more offers. Serious sellers are more acclimated to the current environment and are willing to price their homes to meet the market. Of course, there are also sellers that quickly turn in to buyers as some are willing to take a bit of a loss on their current home and trade up into a larger home to recoup their investment!
Do you fall in one of these categories? Call me today to discuss your needs or if you want more detail about your neighborhood. Enjoy the San Francisco Indian Summer!
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