Appearing in the San Francisco Chronicle Real Estate Section
From time to time, the editors of the Real Estate section at the San Francisco Chronicle will ask leading area real estate agents their opinion and thoughts about various topics related to the Bay Area’s housing market. This is right up our alley given our track record, experience helping buyers and sellers in various parts of the Bay Area and given the fact that Kevin used to be a reporter and lawyer, so you know there‘s an opinion just waiting to get out.
This Week‘s Question:
Are all-cash offers still common?
While all-cash offers have historically received significant attention in San Francisco’s housing market, they only represent 15 to 20% of closed sales, MLS data reveals. The majority of homebuyers in the city, roughly 55% of closed sales, use mortgages to finance their purchases. These figures have remained steady and unchanged since at least 2019.
Nonetheless, cash still plays an important role here. This spring we’ve seen more buyers making larger cash down payments, from the typical 20 to 25% to 40 or 50% percent in cash. This shift reflects a broader trend of homebuyers being more strategic and calculated. To succeed in this market, all-cash offers must be both quick and hassle-free, with a seven-to 10-day close. Because mortgage lenders are still able to close a financed offer in 17 to 21 days, all-cash offers should be very fast and contingency-free. On the other hand, buyers who put down more cash not only preserve more of their cash, but also have the flexibility to borrow just a little more to win a property.
This appeared in the Sunday, May 7, 2023 edition of the San Francisco Chronicle and on SFGate.
MORTGAGES VS. ALL-CASH IN SAN FRANCISCO
For More Sound-Off Snippets...
1264 Church Street, San Francisco, a sunny, top-floor, 2-bed, 1-bath, 1-car parking garage space with ±1,284 sqft (per LiDar) as listed by Kevin Ho and Jonathan McNarry of Vanguard Properties. SF MLS 423910006. www.1264-church.com At the heart of this stand-out property is the newly renovated chef’s kitchen (designed for cooking classes and entertaining), the new bathroom, new, in-unit laundry, new stainless appliances, dual pane windows, wood floors and designer lighting. Combined with its 1935 Spanish-revival heritage in a sought-after Noe Valley location, 1264 Church is exceptional.
Kevin Ho and Jonathan McNarry, top real estate agents of San Francisco’s Vanguard Properties, talk about a big change to the real estate market in California with State Farm and insuring California homes.
Cash vs. Mortgages in San Francisco — which is more popular in San Francisco’s housing market? Kevin Ho and Jonathan McNarry, top-ranked real estate agents at Vanguard Properties, explore showing that financed offers account for more than half of all reported purchases for the past 5 years.
Tracking development in San Francisco’s Outer Parkside and Sunset neighborhoods with Kevin Ho and Jonathan McNarry, Vanguard Properties, and a proposal for a 55-story in the Sunset/Parkside of all places.
The shift towards remote work has greatly influenced buyer preferences and led to changes in the housing market in San Francisco as discussed by top-producing relators Kevin Ho and Jonathan McNarry of Vanguard Properties, San Francisco. www.kevinandjonathan.com
While acute market forces are curtailing new construction starts now, development here was already an uphill battle. Development timelines take years, so any non-NIMBY-related delays in adding new homes will keep housing prices high that much longer. But even for people who can afford to buy in the Bay Area, there’s a shortage of accessible destination homes for folks who are downsizing or ones who can no longer do the stairs in their 3-story Victorian.
Rather than try to compete with the 49ers’ post-season run as very relevant contenders to be Super Bowl champions, many agents will treat this bit of hometown civic pride like a holiday and accommodate sports fans who are also trying to buy a small part of that hometown.
Talking about new census data saying that San Francisco is losing a key demographic of home buyers due to affordability and more on ABC7 News, KGO San Francisco.