2013 – even higher prices and even lower inventory?

by Rob Regan on March 6, 2013

It is Wednesday March 6th, and we are still not seeing a change in San Francisco housing inventory…. right now there are 418 total “units” (homes, condos, coops, lofts and TIC’s) For-Sale throughout San Francisco on the MLS.   The reason I emphasize today’s date is because we’re past the “excuse dates” for not listing your property…. the Superbowl, and the two early Federal holidays.  What’s more, March and April are the #1 selling months in San Francisco nearly every year.  So where is the inventory?

Well, Bill McBride at CalculatedRiskBlog says “… I now think inventory will not bottom this year.  This probably means more price appreciation in 2013 than most analysts expect…”

Of course he is referring to the national real estate market and not San Francisco specifically.  But the logic is that during the early stages of a housing recovery low inventory begets even lower inventory  because buyers are desperate to buy, and Sellers assume waiting will earn them even higher prices.  Eventually something has to give…. just maybe not in 2013.

Since we can’t predict the future, I’d strongly encourage any potential buyer or seller to contact us directly for a full and thorough discussion about your options.

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