How to Overcome a Challenging Real Estate Market in the San Francisco Bay Area

The San Francisco Bay Area real estate market can be challenging, and with mortgage rates climbing over 6%, it can be even more daunting for buyers and sellers alike.

However, with some careful planning and preparation, you can still make the most of the current market conditions. In this blog post, we'll provide you with some tips on how to overcome a challenging real estate market in the San Francisco Bay Area, based on data pulled from a survey conducted by Homelight that Pacific Oak Homes participated in.

1. Consider using a rate buydown to offset higher interest rates

With mortgage rates climbing over 6% on average, it's becoming increasingly difficult for buyers to secure a mortgage with a low interest rate. However, a rate buydown can help offset these higher rates. According to the Homelight survey, 61% of San Francisco Bay Area agents expect buyers to increasingly use rate buydowns to secure a lower interest rate on a home in 2023. This can be a great option for buyers who are struggling to find a home within their budget due to rising interest rates.

2. Take advantage of lower competition when buying

Due to interest rates being at a recent high, there is lower competition when buying. In fact, 80% of San Francisco Bay Area agents say their local area is a buyer's market or balanced market. This means that there are more opportunities for buyers to find a home that fits their needs and budget. It's important to work with an experienced agent who can help you navigate the current market conditions and find the right home for you.

3. Anticipate scarce for-sale signs

One of the biggest challenges in the current San Francisco Bay Area real estate market is the scarcity of for-sale signs. According to the Homelight survey, 64% of agents in the San Francisco Bay Area expect retirees to delay their plans to sell or remain in their current homes, keeping supply historically low. This means that buyers need to be proactive in their search for a home and work closely with their agent to find off-market opportunities.

4. Prepare your home to get the best price

If you're selling your home in the current San Francisco Bay Area real estate market, it's important to prepare your home to get the best price. According to the Homelight survey, 92% of agents in the San Francisco Bay Area say that price reductions have become more common in their local area. Additionally, 48% of San Francisco Bay Area agents say an increasing number of buyers are pushing back on inspection items. A Pacific Oak Homes agent can help you prepare and market your home to attract a strong offer.

In conclusion, the San Francisco Bay Area real estate market can be challenging, but with some careful planning and preparation, you can still make the most of the current market conditions. Whether you're buying or selling a home, it's important to work with an experienced agent who can help you navigate the current market conditions and find the right home for you. If you are looking to start the home buying or selling process this year, contact the Pacific Oak Homes team today!