For better or for worse, the current health crisis has affected the majority of industries across the globe. Considering travel restrictions in early 2020 as well as the shift towards remote work, the COVID-19 pandemic has disrupted the real estate market especially in prime locations like the Bay Area.
It might seem counterintuitive to invest in real estate especially in the competitive Bay Area market during a global crisis. However, real estate experts agree that now is the best time to consider buying a San Francisco home for sale.
Bay Area real estate: Moving towards the suburbs
The onslaught of COVID-19 has seen an increase in companies offering their employees the option for remote work. Salesforce, a cloud-based software company based in Downtown San Francisco, have extended their work from home directive until 2021. Adobe, another software company headquartered in San Francisco, has announced that their employees have the option to work remotely “forever” – should they wish.
Because of these changes, city dwellers within the San Francisco area are looking to relocate to the neighboring suburbs. This shift isn’t surprising for several reasons.
For one, properties outside of San Francisco have more space to accommodate the demands of working from home. Homebuyers in the area, mostly people who work in the tech industry, are no longer tethered to their daily commute. Therefore, they can choose to live just outside the city. Moreover, it doesn’t hurt that interest rates are at an all-time low.
Is San Francisco real estate still competitive?
With homebuyers pivoting their interest towards properties outside of San Francisco, the question stands – is the real estate market within the city still competitive?
The answer is yes, but with reservations.
San Francisco, as well as neighboring areas like San Mateo and Oakland, remains a strong real estate market. The demand, however, has slowed down despite the surplus of homes.
In light of the current pandemic, buyers have become more discerning about purchasing homes in densely populated areas. San Francisco is no exception, contributing more than 7,200 new cases in early November to a national total that topped over 120,000 reported infections across the US in one day alone.
Inventory within the city is at its highest in years and properties are sitting in the market much longer than usual. At present, homes get two to three bids instead of the eight to 10 before the pandemic.
With that said, the San Francisco real estate market is resilient. There are still plenty of real estate opportunities in the area for both buyers and sellers.
Now is the time to buy a home in the Bay Area
Again, there is no better time than now. It is only smart to take advantage of the low interest rates and the high real estate inventory.
Amir Hardy has decades of experience in residential and commercial real estate investments in the Bay Area. I have the expertise to find the right property for you and your family – pandemic or not. Contact me at 415.602.0570 or at amir(dotted)hardy(at)compass(dotted)com and start living your new life in San Francisco today.