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What to Expect from San Francisco Real Estate in 2021

 

Red-hot Suburbs, Low Mortgage Rates, and a Need for Space Will Be Trends for San Francisco Real Estate in 2021.

Are you ready to work with a San Francisco realtor to buy or sell a home in the new year? Knowing what the market is likely to do in 2021 will help you make smart decisions when it comes to property. Though no one can tell the future, take a look at what experts are predicting for the San Francisco real estate market in 2021.
 

Uncertainty Continues

If there’s one theme carrying over from 2020, it’s uncertainty. Though there were initial high hopes about the vaccine rollout, many are now wondering whether it will take effect soon enough to impact this year’s economy this year. The uncertainty could be good news for those looking to buy San Francisco homes — especially if they are open to buying a condo. Experts have said that buyers can score a condo for 2018 prices in 2021 and that listings will continue to go up while prices go down. Small companies with rental holdings may also be ready to sell in 2021 after a financially disastrous year. Those who want to invest in condos could see some great opportunities in the next few months if they know where to look, but they’re advised not to wait too long and miss out on some good deals.
 

The Suburbs Will Remain Hot

 
Many people with San Francisco homes sold them in 2020 to move to the suburbs in search of more space since COVID guidelines meant they were working and schooling from home and no longer had to commute. Your San Francisco realtor will tell you that the suburbs will remain hot in 2021, and areas like Lafayette, Moraga, and Orinda will keep attracting buyers. This is good news for those who want to remain in the city center and close to amenities, entertainment, and excitement. As those who are migrating to the suburbs sell their homes, more inventory will be on the market, and prices will eventually go down. Work with your San Francisco realtor to find out when affordable homes are listed so you can jump on them.
 

Open Houses Won’t Resume

In-person open houses for San Francisco homes became a thing of the past in 2020. Experts predict they won’t be back anytime soon, and certainly not in 2021. Virtual open houses and tours are much more accessible to buyers, especially those who don’t live nearby. They’re also more convenient, quicker, and less expensive for sellers and real estate agents. Expect virtual options, including open houses, tours, and even virtual closings, to remain popular in the new year. If you’re selling, this means working with your San Francisco realtor to make sure you have high-quality images and videos of your property. This will help create eye-catching online marketing campaigns to target potential home-buyers and entice them to check out your listing, learn more about your home, and schedule private in-person showings.
 

More Space Remains Important

In 2020, millions of people began spending the majority of their time in their homes. Working, homeschooling, cooking, and entertaining all took place in the home, which led to a need for more space. The need for space is one of the reasons some made the decision to move out of the city and settle in the suburbs, where homes with more space were affordable. Others with San Francisco homes opted to remodel and create home offices, gyms, or outdoor living areas.
 
Homeowners were not the only ones who gravitated toward more spacious digs in 2020. Renters were also less likely to share space with numerous roommates and were more willing to look at outlying rentals that could provide the space they needed at a price they could afford.This trend will continue in 2021. Homes with dedicated office space, “Zoom Rooms,” and other pandemic-friendly amenities will be hot in 2021. Those who want to sell their homes should work with a San Francisco realtor to decide if remodels will be necessary for their property to be competitive. Buyers should make a list of “must-haves” in their new homes and decide if they can get these in the city or if they need to consider a move to the ‘burbs.
 

Mortgage Rates Will Remain Low

Mortgage interest rates hit record lows in 2020 and, while many experts were skeptical about how long this could last, most are predicting that rates won’t top 3% in 2021. The low mortgage rates will continue to motivate those looking at San Francisco homes to buy before rates increase. Those who want to stay in their current homes will likely look at refinancing their mortgages if they have not already done so. If you’re on the fence about buying, work with your San Francisco realtor to decide whether the low interest rates are motivation enough to make a move. If the rate jumps by just one percent, you could pay a few hundred extra dollars a month on your mortgage, so it could pay off to act now.
 

A Slow Shift Back to the City

While most experts predict that suburbs will stay hot throughout the year, some believe there will be a slow shift back to city living in the later months. This is due to chatter that tech companies will not be letting their employees work 100% remotely by the end of the year or will be cutting salaries for those who work partially from home. Because San Francisco has such a tech-heavy industry, this could bring workers back to the city in droves. If buyers are interested in San Francisco homes, the time to buy is now, before this shift occurs and inventory decreases while prices go back up.
 
2021 could be the perfect year for many to make a move in the San Francisco area. If you’re ready to buy in the city or want to sell a home pandemic-friendly home, work with an experienced realtor like Brendan Callahan to help you navigate the process.

 
 

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