This is a very unnerving set of data. Let’s hope it’s too small a timeframe to give an accurate assessment, but we could very well be on the cusp of a drastic shift in the market if the Government doesn’t pull their head’s out of their a$$es and get back to work!
Short period data often doesn’t tell the whole story, so we dug a little deeper to see how October 2012 played out, and you’ll see absorption (properties accepting offers) hovers in the 9-11% range. Therefore, a dip down to 6% is a bit concerning.
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Buyers get ready. This might be your time to finally get in the market without any competition. Sellers, don’t panic. There are still plenty of buyers out there that want your property, just get ready to negotiate rather than having your cake and eating it too.
San Francisco real estate weathers market storms much better than the rest of the nation, we have a true supply/demand problem here, we’re surrounded by water, in most neighborhoods building over 40 feet is prohibited, and our city really doesn’t like to approve development, so as long as people still want to be here, companies continue to innovate, we think we’ll do just fine. But who knows. This government shutdown thing certainly isn’t helping anybody out.
Think positive thoughts….