When it comes to real estate, we have all heard that “location, location, location” is key. But, when it comes to buying or selling real estate, timing can be everything. Sellers who do not time the market right may end up getting much less for their property than they thought, while buyers who do not time it right may end up paying a premium for the location they want. This can apply to both residential and commercial real estate transactions.
The difficulty, of course, is trying to gauge the factors in the real estate market that can serve as indicators about when the timing is right to either buy or sell. One recent news article examined a variety of factors to attempt to predict what might happen in the San Francisco real estate market before 2024 ends.
What does the future hold?
According to the recent article, the housing market in San Francisco is set to drop in the coming months. The article noted that remote work, along with people moving from the San Francisco area to other locations, are part of the variety of factors that could lead to a 5-10% drop in housing values over the course of the rest of this year. The cost of living in the San Francisco area is already high, so the article predicted a drop in those costs will contribute to reduced housing values as well.
Our readers in California and elsewhere may find it hard to believe, but the recent article noted that the current average home price in the San Francisco area is almost $1.3 million. With prices that high, it may not be a stretch to believe that home prices falling is the only logical direction for the market to go. As a result, sellers may be looking to “time the market” right now, while buyers may be willing to wait a few more months to see what actually happens.