April 2010 Update
As shown in the updated charts below, buyer demand in the San Francisco home market continues to strengthen, while supply (as measured by months’ supply of inventory) continues to tighten. Median prices remain surprisingly stable, jogging up and down in small increments over the past 4-5 quarters, but always staying within a 3% range.
The spring season is typically an active sales period, though some pundits believe buyers have been rushing in recently because 1) the Federal Homebuyer Tax Credit is due to expire this month, and 2) an expectation that mortgage rates will rise now that the Fed has just ended its mortgage bond buying program. However, because of income and purchase price limits, and the higher cost of housing here, the Fed tax credit has never impacted SF like it has other areas of the country, and now a new California tax credit has been announced with no income or price limits. Interest rates have started to tick up a little, but remain very low by historic standards.
New $10,000 California Homebuyer Tax Credit
Federal Tax Credit Due to Expire on April 30
Under a new California law, a homebuyer may receive up to $10,000 in tax credits as either a first-time homebuyer or as a buyer of a brand new home. With the Federal tax credit due to expire soon, there is a brief window of opportunity in April to qualify for up to $18,000 in combined federal and state tax credits. This would require an accepted contract to purchase before April 30 with close of escrow occurring May 1 to June 30. Here is a link to a chart of details and eligibility criteria for both programs. This should be reviewed with your accountant.
Homebuyer’s Tax Credit Chart
Median price is that price at which half the sales were higher and half were lower — it can be affected by changes in value, or by changes in buying trends, or by unusual market events. Months’ Supply of Inventory (MSI) is that number of months it would take to sell existing inventory at the current rate of sale — the higher the MSI, the weaker the demand. Average Days on Market (DOM) are the average number of days it takes for a listing to accept an offer — the lower the days on market, the faster homes are selling.
Statistical parameters are generalities which may fluctuate up and down, sometimes for no discernible reason. All data is from sources deemed to be reliable, but may contain errors and omissions, and is not guaranteed. Sales not reported to MLS, such as many new-development condo sales, are not included in these statistics.
SF Homes Accepting Offers As the spring selling season began in earnest, the number of listings accepting offers increased to their highest level in well over 2 years.
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