This is certainly true for SoMa. In some ways we can say that the bottom of the market is now behind us. Those “incredible deals” at the new developments have now been replaced with “good deals”. Prices are obviously lower than they were 2 years ago but price stabilization is beginning to work its way through the market. The extensions of the $8,000 tax credit and $729,750 loan limit will only help to further firm up the market.
An important reason that the housing market is stabilizing is the reduction in inventory. Current sales and inventories suggest that supply will decline below the pre-2006 levels by the end of 2009.
But analysts say that the stabilization of the market doesn’t mean that prices will rise anytime soon. They point to what they call “shadow inventory,” foreclosed homes that banks are holding off the markets. They predict that these homes will hit the market in spring 2010.
But overall, they are optimistic that the housing recovery is built on an improving economy and say that the market will continue to stabilize.
Source: BusinessWeek.com, James C. Cooper (11/09/2009)
Filed under: Buyer Info, Seller Info | Tagged: San Francisco Real Estate, SoMa Real Estate, South Beach Condos, New Developments SoMa, South of Market Condos, SoMa Realtor, South Beach Lofts, South Beach Real Estate, Michael Novia
