Once a quarter I publish a newsletter for my clients and mail them a hardcopy. If you'd like to be on my mailing list, please email me your address. If not, you can read my latest newsletter below.

My Newsletter - December 1, 2003

Dear Friends
 
For those of you who actually read this newsletter and have been wondering if the third quarter issue has gone missing, well it hasn’t.  It didn’t get written because yours truly has been swamped helping your friends and neighbors with their real estate needs.  And that’s a very good thing for you as well as me because it means the market is extremely strong right now and has been for the last four or so months.

Market Update

After a lackluster spring, many of us thought the economic malaise affecting other businesses was coming home to roost in the real estate sector.  And then summer, which traditionally is slow in the City, was just gangbusters.

There was enormous pent-up buyer demand that decided it was time to open up the checkbook and invest in real estate.  Some of that motivation came from interest rates, which while still historically low, were headed up.  Also, there hasn’t been much inventory coming available, so buyers have been more motivated to buy now, rather than thinking something better will be coming on the market next week. This has been true for the lower-end market, and by that I mean single family homes under $1,500,000.  Two and three unit buildings have also been very hot.

The higher-end market, over $2,000,000, in the northern part of the city has been showing signs of improvement, but that market is very location sensitive.  Buyers want the best blocks of Pacific Heights, Russian Hill, etc. and they must perceive they are getting good value or they won’t buy.

As to the short-term future, I think it’s very good.  There’s still a great deal of demand out there, and not a lot of inventory. I don’t see prices going up dramatically, but we should see a respectable increase in current values.  And while I normally counsel clients at this time of year to wait until spring time if they’re thinking of marketing their properties, I don’t think we’re going to see buyers taking a break for the holidays—they’re motivated and they should stay active through the rest of the year and into January.

Season’s Greetings

As an East-Coast transplant the holidays are not quite the same without snow.  But I’ll gladly trade that blanket of white for all the beauty our City has to offer.  We are truly blessed.  Wishing you and yours a safe and happy holiday season.  And as always, if I can help you or your friends with any real estate needs, please don’t hesitate to call.

Sincerely,
Tom Biss