February 2021 Market Update
/HAVE WE TOLD YOU LATELY THAT WE LOVE YOU?
Happy Valentines Day and Happy Lunar New Year from Hatch Realty Group! Love, good fortune and well wishes are being sent to you with this month's newsletter. We would like to wish you all a fun filled February with loved ones.
WE LOVE YOU!
MARKET UPDATE
The real estate market usually heats up right after the Superbowl, and while its true, I feel like it already started heating up at the beginning the year and has been increasingly been getting hotter since then. Lack of inventory and historically low rates continue to contribute as key drivers to this unbelievable real estate market. Even condo inventory, which was dead in the water last year is now getting absorbed. Hatch Realty Group sells homes in all 7 Bay Area Counties and we have noticed that the same rings true for these markets all across the board. Homes are garnering multiple offers well above list price within a week of being posted on the MLS! Non-contingent offers and "escalation clauses" are being included in contracts and buyers are even offering to pay more than appraised value just to lock in the property. Buyers in some areas are writing offers well above the highest comparable and include language in their offer that guarantees a certain amount over appraisal value.
"If property does not appraise, buyer agrees to pay up to $15,000 above appraised value in cash."
Since rates are so low, buyers are more focused on what they can afford rather than the recent comparable sales. In other words, some buyers are basing their offer price on their monthly budget vs. how much the last home in the neighborhood went for. It's a significant case of FOMO (Fear of Missing Out) for buyers, especially since if they lose out, the next home that comes on the market will likely be sold for higher than the previous comparable.
At first it was shocking to see how hard it has been for buyers to buy a home in this market, but with the interest rates so low, I understand why everyone is scrambling to lock something in. The current problem is that there's a low supply of homes for sale....Inventory trickles in with one or two homes a week for buyers to check out and everyone is looking at the same homes. In the Peninsula 10 offers are the norm for homes priced under $1.3M. In Vacaville, I've seen as high as 27 offers on one property for homes priced under $650k. Our Vallejo condo listing got 17 offers after being on the market for only 8 days. Single family homes in Noe Valley, Bernal or Potrero Hill priced under $2.5M are slim pickings as well and overbidding is rampant for homes under $3M in San Francsico.
From my experience these past few months, I see that the market is so hot that many homes get sold before they even hit the market, sometimes with little to no effort from the sellers to fix the home up. As long as the home is in good condition and it's priced right, there's a buyer out there willing to give them a little more than they want just to lock in the property. 3 of our listings are currently in contract just from the interest that came from the For Sale Sign at the front door or through network marketing. Last month we sold 2 homes off market as well. Some sellers want as little hassle as possible, so off market sales are becoming a viable option as long as they can get their target price. On the other hand, if you have a property to sell and want to get TOP dollar, this market is ripe to do that with just some minor upgrades and cleaning up. (We can help with that.)
Prices are still on the rise and my prediction is that it will continue to be on the rise for the entire 2021. If you are looking solely at the real estate market, you wouldnt think there was a recession looming....Although, I have to say that this market does feel a tad like 2008...except that interest rates are half of what they were during that period (5.5% 30-year fixed in 2008 vs today 2.75% 30-year fixed) and buyers these days are coming in with much higher down payments than the era preceeding the previous downturn.
If you have any specific questions about a particular market, are looking to buy or have a home to sell, please feel free to reach out. We would LOVE to help you reach your real estate goals! Our team is standing by to assist for anything you need.
FOR SALE
165 Woodridge, Hillsborough
Built Price: $22,800,000 | Click HERE for more information | FOR SALE
2740 Tice Creek Dr #1, Walnut Creek
List Price: TBD | COMING SOON
332 Frankfort St, Daly City
List Price: $1,200,,000 | COMING SOON
201 Harrison #918, San Francisco
List Price: $549,,000 | FOR SALE
IN CONTRACT
672 FREESIA DR, SOUTH SAN FRANCISCO
List Price: $1,599,000 | PENDING
109 Kathy Ellen Dr, Vallejo
List Price: $349,000 | PENDING
90 Flynn Ave Unit B, Mountain View
List Price: $729,000 | PENDING
21 Massasoit, San Francisco
List Price: $1,095,000 | PENDING
436 Marcie Circle, South San Francisco
List Price: $530,000 | PENDING
165 Santa Rosa Ave, San Francisco
List Price: $1,150,000 | PENDING
1219 Versailles Ave, Alameda
List Price: $799,000 | PENDING
DR Horton Skyline Ridge, San Bruno
List Price: $1,825,000 | PENDING
Medea Way, Antioch
List Price: $517,900 | PENDING
Pintor Way, Oakley
List Price: $517,900 | PENDING
JUST SOLD
1211 Scott, San Francisco
Sale Price: $2,500,000 | SOLD
1069 Powhattan Ave, San Francisco
List Price: $1,350,000 | Click HERE for more information | SOLD
1973 Trento Loop, Milpitas
List Price: $1,100,000 | Click HERE for more information | SOLD
1269 Echo Valley Drive, San Jose
List Price: $2,099,000 | SOLD
RENTALS
451 Kansas St #362, San Francisco
FOR LEASE for $3550/month | Click HERE for more information
413 Piccadilly Pl #9, San Bruno
FOR LEASE for $2750/month | Click HERE for more information
3800 Maybelle #2
FOR LEASE for $2200/month | Click HERE for more information
3511 Harper, Oakland
LEASED for $2800/month
NEW DEVELOPMENTS ALERT
Developers are giving out lots of deals and incentives. Without an agent, you won’t know the right questions to ask. We’ve gotten great deals for our clients lately. Contact us to learn more about what we can help negotiate for you!
Union by Calatlantic, Dublin
Starting in the high $700ks | 1443 to 2076 sq ft | Click HERE for more info
Northpoint at Delaney Park, Oakley
From $491,990 | 1631 to 2261 sq ft | Click HERE for more info
Topaz by Lennar, Tracy Hills
From $665,880 to $768,880 | 2914 to 4100 sq ft | Click HERE for more info
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