Recently Paragon agents were surveyed informally with regard to their past 12 months of activity. While the analysis and survey were not rigorously controlled, Paragon is one of the four biggest residential brokers in the city and thus offer a fair sampling of what’s going on out there.
Here are some of the things they said about sellers:
· 60 percent are willing to leave the city. This is for reasons including schools, affordability, job-related reasons and retirement.
· 15 percent of sales transactions involve trust, probate or investor sales, or people moving into rentals or retirement homes, with no new home purchase involved.
· 25 percent wish to buy another property in the city, either upgrading to a more expensive home or downsizing to a smaller home.
What can we take away from this?
Perhaps the biggest single reason for selling is to relocate for what are seen as better public schools outside San Francisco, or to enroll kids in suburban public schools rather than pay the price of private schools in the city. Some city homeowners are also finding themselves motivated by high prices to cash out in the city and buy bigger or better elsewhere. In addition, frenzied market conditions are discouraging homeowners who might otherwise sell to buy other homes within the city. Many of these homeowners are instead staying, which in return pushes down listing inventory.
Tomorrow we’ll look at buyer dynamics.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com