I predict our 2020 market will follow a similar course to what we saw in 2019. Here’s what I mean.
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Now that we’ve entered 2020, it’s time for a quick recap of 2020 and few predictions for what the rest of the new year holds.
At the beginning of 2019, the market was hot. Properties were attracting multiple offers and selling over asking price. This was primarily caused by low interest rates. Also, job growth was encouraging people to move to the San Francisco area.
Once summer hit, the hot market continued. There weren’t enough properties to go around, and buyers were still overbidding for them. In fact, the average days on market dropped and inventory decreased by 6%. Every year, though, our market experiences a lull in August, and 2019 was no different.
If you’re a buyer, you should take advantage of these conditions early and work hard to get your offer accepted before the market heats up.
After August, the market heated up again and produced its last flurry. Once more, properties sold quickly and for over asking price. After September, the market shifted and slowed down, and there was a lot of news coverage dedicated to this topic that you might’ve heard. As we transitioned into winter, the market stayed slow.
Overall, prices rose in 2019, and as we make our way into 2020, there’s still not enough inventory and interest rates are still low. What do I foresee happening for the rest of the year? Probably the same thing we saw last year. The market will heat up again come springtime, but we’re only expecting a 2% rise in home values, so it won’t be as hot as 2019.
A lot of people talk about what’s happening outside of San Francisco, but if you look at the job growth in our city—coupled with these low interest rates—prices are expected to increase. This means 2020 will be another good year for home sellers. If you’re a buyer, you should take advantage of these conditions early and work hard to get your offer accepted before the market heats up.
If you have any more questions about our San Francisco market, don’t hesitate to reach out to me. If you have a specific real estate topic you’d like to see me address in a future video, leave a message in the comment section below. I look forward to hearing from you.