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Believe it or not, there are some good times of year for someone to make the leap to home ownership — even in the Bay Area.
The BHJ Index attempts to calculate whether a homeowner will receive more returns on their investment, than a renter living in a similar home who invests all of the money after rent that would have gone towards home ownership. Scroll ahead to see which markets make the most sense to rent in, rather than buy.
Believe it or not, there are some good times of year for someone to make the leap to home ownership — even in the Bay Area.
The BHJ Index attempts to calculate whether a homeowner will receive more
Photo: Justin Sullivan, Getty Images
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Believe it or not, there are some good times of year for someone to make the leap to home ownership — even in the Bay Area.
The BHJ Index attempts to calculate whether a homeowner will receive more returns on their investment, than a renter living in a similar home who invests all of the money after rent that would have gone towards home ownership. Scroll ahead to see which markets make the most sense to rent in, rather than buy.
Believe it or not, there are some good times of year for someone to make the leap to home ownership — even in the Bay Area.
The BHJ Index attempts to calculate whether a homeowner will receive more
Photo: Justin Sullivan, Getty Images
The holidays bring many gifts: among them, possibly, is the chance for prospective Bay Area home buyers to finally get a foot in the door of one of the world’s most competitive real estate markets.
San Francisco
In San Francisco, September brings the most new listings. But by November, listings drop off.
“In San Francisco and many of the Bay Area markets, September is the single month with the highest number of new listings, which fuels the relatively short autumn selling season, and typically causes a big spike in October sales. In November and December, the number of new listings starts plunging dramatically toward its annual low, as the market shifts into the mid-winter, holiday season slowdown,” Patrick Carlisle, chief analyst for Compass Realty, told SFGate.
That slowdown lasts from mid-November to mid-January.
“Also in late November and December, many sellers — especially of more expensive homes — pull their unsold listings off the market to await the beginning of the more active selling season in the new year, “said Carlisle.
Partially due to this slowdown, data show that buyers in San Francisco have the maximum negotiating leverage twice a year: a) in late summer, and b) during the mid-winter holiday period.
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Sellers are more motivated clearly (or else why would they choose the stress of selling their homes to the holiday season?). This is the time with the least competition from other buyers as well: “Many buyers disappear for the holidays and sellers are much more open to lower offers to get their homes sold,” Carlisle said.
East Bay
Here, too, sellers gain ground during the holidays. This year, the number of listings has been decreasing steadily since September. Movato reports 512 homes for sale in Oakland now vs. 520 last month. In Berkeley, listings dipped from 120 in October to 109 this November.
Marin
Thomas Henthorne, a top real estate agent in Marin County, told SFGate that the North Bay also offers holiday deals to buyers. “Many homes are coming off the market as we move into the holidays,” said Henthorne. “We are down to about two months of inventory in Marin now versus last month when we had almost three months of inventory.” Though there are fewer overall homes to chose from, “This is a great time for buyers to strike a deal as sellers tend to be more motivated as the holidays approach and there is less competition from other buyers,” Henthorne said.
A good investment
Despite speculation this year that the country may be headed toward a recession, The Urban Land Institute ranked San Francisco and Oakland among the top 80 metros for real estate investing. Citing growing local economies driven by a young workforce in both areas, a September 2019 Urban Land Institute study ranked San Francisco as 12th, San Jose 13th, the East Bay as 30th among the top 80 metros where growth is expected to continue. So, if home buyers can indeed get better prices during the holidays, this could yield an even better return later … as long as they don’t later sell during the holidays themselves.
Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert.
Article source: https://www.sfgate.com/realestate/article/Bay-Area-homebuyers-real-estate-san-francisco-14851017.php