Is it difficult finding listings in the Bay Area right now?

While finding listings can present challenges in any market, today’s potential sellers are facing particular decisions on whether or not to sell, including:

• Mortgage lock-in effect: According to redfin.com, 78% of current mortgages have a rate of 5% or below. These ultra low rates now “lock-in” homeowners, deterring them from moving. 

• Length of ownership: In San Francisco, length of homeownership has gone up from about 5.7 to 11.9 years in the last 20 years. Those that have owned the same home for 10 years or more have most likely upgraded their home over the years, increasing pride of ownership, along with financial and emotional investment. 

• Becoming a buyer after selling: The prospect of exchanging rates below 5% for the current 6-7% range can dissuade potential sellers from listing their homes. Additionally, having to search in a low-inventory market can be discouraging. 

However, there are still pockets of opportunities for sellers in today’s low-inventory market, like commanding a premium sales price. In the Bay Area, there are still more buyers and demand than there are homes for sale, potentially tipping the scales in a seller’s favor. Having an adept Realtor who can leverage their network, utilize creative marketing techniques and strategic pricing can help you capitalize on these opportunities.

Original article published in the San Francisco Chronicle on April 28, 2024.