Recently, Curbed.com penned an article, “Should you buy a home in SF in 2020?” The question is somewhat of a loaded question. The better question is can you afford to buy a home in San Francisco? With the median two bedroom home priced at $1.35 million many home buyers, especially first time home buyers, are simply priced out of the San Francisco housing market. Furthermore, depending on who you talk to, cash buyers represent 40-50% of homebuyers in San Francisco which makes the prospect of buying a home in The City that much more challenging. So what is one to do?
If you can afford the San Francisco home prices then you have some great options within the city as there are many great neighborhoods to choose from: Twin Peaks, SOMA, South or North Beach, Glen Park, Bernal Heights, Castro, Cole Valley, Hayes
Valley, Mission, West Portal, Pacific Heights, Saint Francis Woods, and of course the Sunset and Richmond Districts, and more. San Francisco home buyers have many eclectic neighborhoods to choose from, each with their own character and energy.
So let’s get back to the question, “Should you buy in SF in 2020?” I think if you are planning on buying a home in SF and staying in the city for at least 5-7 years you will likely do okay with hour homes value. If on the other hand you think you may sell the home in 2-3 years after you’ve purchased it you may want to reconsider. According to Senior Economist at Zillow, Cheryl Young, annual home value changes in the San Francisco metro have been negative since April of 2019.
If you are priced out of San Francisco like many home buyers in the Bay Area, a solid viable option as many have done, is buying a home in alternative areas like the East Bay. Many times access to public transportation and urban amenities is high on home buyers needs and wants list. For those that really want to live in San Francisco but just cannot afford it Oakland is a good alternative as it has easy access to downtown San Francisco (actually quicker than some areas in San Francisco) and offers some great urban amenities itself.
Whether you are looking to buy or sell a home in San Francisco or the East Bay I would be happy to talk shop with you and share my views as a realtor, licensed appraiser, and property manager for family property. I’ve lived in San Francisco, Berkeley, and Oakland and have seen many changes in all areas over the last 30+ years living in the SF Bay Area.
